Payoffs

[Scott T.]

Look at my first deal.

Is this a Short Sale?

The homeowner holds a  155K first and 15K second mortgage. He is not in default. 

I've offered him 100K for the home. He does not have 70K to pay off the remaining balances on the 2 mortgages. 

Is this a short-sale? 

If not, what is it? 

If he agrees, how does the homeowner finance the remaining 70K?

Thank you.

[Wayne Brooks]

As K. Marie said, the bank will only agree to a short sale if the property is upside down AND the owner can show a hardship as to why they can't pay the mortgage, and not show a lot of other cash or assets. If you're working off the 70% of ARV less repairs, the bank isn't likely to approve the price.