Confused about the sale of a house for less than our mortgage payment?

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We need 35 million dollars on a rental property that we bought for 40 million years ago. The area where the property went to the toilet in recent years and the house is now worth about $ 15 – $ 17 million. We received an offer of $ 15M for home and we must seize it. We can not keep a tenant in the property caused by the crime rate down. The property has been stolen / vandalized 3 times already. We contacted our mortgage company to see if we could pay $ 15 million to the conclusion, but an unsecured loan of them continue to receive the payment. This gave us dept immediate mitigation of losses and began to talk of selling sent. I did not know what that meant I googled online. If we are not asking to remove / forgive the balance, why are they talking about short selling? If they can not give us the balance, unsecured, why not say so and hoping to get an unsecured loan elsewhere? I’m so confused …

  1. Reply
    May 1, 2011 at 11:54 pm

    You are not the typical “short sale” borrower- most are asking to sell the property for the current value and NOT pay the difference, they are probably not used to dealing with your request.
    Regardless, all short sale situations are very time consuming and answers takes weeks not days to return- and now you are confusing them
    You should contact a Realtor that specializes in short sales in your area and let them help navigate the situation with the lender, they will often times get faster and better results.

  2. Reply
    J. Philip Real Estate
    May 2, 2011 at 12:11 am

    For them to approve a relase of the lien and to convert the loan from a secured mortgage to an unsecured note they’ll need to get an approval. It is a short payoff to release the lien, even if you are paying off the remainder, so the loss mitigation department is the logical department to handle it.

    Most short sales they do forgive the remainder but on some they take a note, and you fall into the latter group. Just cooperate with them and you’ll be fine.

    Good luck.

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