buying a short Sale in Placer county CA

Submitted by mygenea from CA - 07/02/2009 - 2:05pm

I am interested in buying a house that is listed by a broker as being a short sale.  I know for a fact the seller is in default on a 1st and second loan on this property.  However, the seller owns another house free and clear in the same neighborhood, which is not on the market.  Can this seller possibly claim to have a hardship that will be believed by her 1st loan bank?  Could that bank ask her to sell her other house rather than allow her to short-sell the house I would like to buy?

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Comments

Submitted by Sean - 07/02/2009 - 11:25pm

Really hard to know. Will vary a lot by bank, and on what the seller is willing to accept. Perhaps the seller will pitch in, or the lender will realize they don't have a better option, especially if they were purchase money loans that the lender is unlikely to collect a deficiency on.
 
Whenever making an offer on a short sale there is always a strong risk the deal won't close - just part of the deal.

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