Can I Do A Short Sale With More Than One Mortgage?

Multiple Mortgages and Short Sales:

Often times people have more than one mortgage and need to apply for a short sale.  This is OK and it's actually a good idea to consider a short sale if you have more than one mortgage.  Here's the reasoning behind my statement.

In Minnesota, a lender can either foreclose on your home, or they can pursue a deficiency judgment against you for the balance owed, but not both.  In most circumstances, if your home is headed to foreclosure, it's the first mortgage company that purchases the rights a the sheriff's sale.  They've opted to start the foreclosure process on your home, so the first mortgage company has given up it's right to pursue a deficiency judgment against you.  However, you have a second (and maybe a third) mortgage on your home.

Since two mortgage companies cannot pursue the home in foreclosure action, the only thing that is left as an option to the second mortgage company is to get a judgment for the balance owed.  Of course, avoiding this situation is important because if a judgment is obtained, they can legally use your assets to pay themselves (Bank accounts, cars, etc).  The purpose of the short sale does have it advantages.  Getting your lender to agree that any amount received at the closing to satisfy what you owe them can certainly become a powerful "must have" when considering your options to apply for a short sale.

We're experts Realtors at the Twin Cities Short Sale Realtor in getting your mortgage companies to agree that what they've received as part of your home selling, is a good deal.  Contact us today to learn more!