How do I find out whats owed pre-short sale?

[Terry Portier]

I have a motivated seller/realtor that is about ready to go into short sale, is there a way I can find out what the seller owes? Is it public record? The seller is not disclosing that info and the offer from a big rehab company that the bank turned down. I figure if I can find out what’s owed I got a place to start negotiating. This place is gutted and needs major renovations, so I don’t think the bank wants it back.

I’d think this bank would be my best place to negotiate at least construction financing, but the seller is holding that back too. I know the seller can’t disclose too much being a realtor by law. Other thing I learned is the city is criminally prosecuting the seller for not working on the place it’s been on the market a while untouched. Wow!
We are getting rehab bids together to look at cash flow.

[Don Konipol]

Terry P., I think you are a little confused. A short sale occurs when the loan on the property is greater than the market value. The seller is essentially asking the bank to accept a loan payoff "short" of the amount required to fully pay off the loan.

If the offer on the property is for the amount owed or greater, it would not be a short sale and not entail the need for mortgagee approval. Seller's are not able to sell the property for $80K, payoff a $60K mortgage for $40K and pocket the difference - at least not legally.

Further, I am afraid you do not have a motivated seller, or if you do he does not regard you as a serious buyer. Any motivated seller would be more than willing to give you the information you are requesting. There is NO law requiring a Realtor not to provide information on his own property.