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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Experienced short sale buyers: I have a question re: liens. Posted by Doug on February 04, 2010 at 3:28 PM In Reply to: Experienced short sale buyers: I have a question re: liens. posted by Alfred, CA on February 04, 2010 at 12:41 AM : If you purchase a property from a lender via short sale what happens to any liens or other encumbrances on the property? : Are they wiped off as in a foreclosure or REO sale? Does the seller/lender clear them? Does the buyer get stuck with them? Do results vary from lender to lender? : Thanks in advance. I do not purchase short sales, but know that they are quite different than auction sales in that all lien holders must reconvey, the liens are not wiped out. Your lender will require title insuracne showing that thos liens have been satisfied. That's the bad news. The good news is that many junior lenders will consider a token payment of $1,000-$5,000 in return for their cooperation, especially if the borrower is already delinquent and the property is over-encumbered based on today's value. Some brokers have had more success than others negotiating short sales when there is more than one loan, so it pays to consult with someone with experience. Good luck. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : If you purchase a property from a lender via short sale what happens to any liens or other encumbrances on the property? : : Are they wiped off as in a foreclosure or REO sale? Does the seller/lender clear them? Does the buyer get stuck with them? Do results vary from lender to lender? : : Thanks in advance. : I do not purchase short sales, but know that they are quite different than auction sales in that all lien holders must reconvey, the liens are not wiped out. Your lender will require title insuracne showing that thos liens have been satisfied. That's the bad news. The good news is that many junior lenders will consider a token payment of $1,000-$5,000 in return for their cooperation, especially if the borrower is already delinquent and the property is over-encumbered based on today's value. Some brokers have had more success than others negotiating short sales when there is more than one loan, so it pays to consult with someone with experience. Good luck. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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