Ventura County Short Sales: Why A Second Mortgage Is Willing To Negotiate On A Short Sale

Ventura County Short Sale HELP!! –Are you wondering why a Second Mortgage or HELOC gets zero from a foreclosure. Let me explain why.

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.  When a property is foreclosed upon, it is auctioned on the courthouse steps.  Let me give you a scenario where a homeowner owes the following on the property.  First Mortgage is owed $200,000.  Second Mortgage is owed $40,000.  There is a HELOC (Home Equity Line of Credit) that is owed $100,000. (The home increased in value to $400,000 and a lender agreed to grant the loan.)  So a total of $340,000 is owed on the property. Now, what if it only sells for $150,000 on the courthouse steps. Who gets that $150,000?  The first mortgage does. The second mortgage wouldn’t get a dime unless the property sold on the courthouse steps for more than $200,000.  The HELOC is in third position and doesn't receive any money unless it sold for more than $240,000. This is why a second mortgage gets so little money from a foreclosure.  Historically, second mortgages were loaned for the top 20% of the property value. The lower 80% was the first mortgage.  In most cases, the attorney fees, foreclosure costs, delinquent property taxes, and other fees would bring the first mortgage’s total up to around 100% of the property value.  This is why in most cases a second mortgage rarely gets any money from a foreclosure. Of course there are other variables that can change things, but this is how it usually works. Thinking about a short sale?  I can help you short sale your property and get back on your feet. Send me an e-mail at cjohnson@prucalhomes.com. I will contact you for a free consultation.  When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 805-208-0823 Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.  Thinking about a loan modification? Our Ventura County loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.  Thanks for reading this,  Chris B Johnson.  Chris B is a Real Estate Agent at Prudential Califonia Realty. Phone: 805-208-0823. cjohnson@prucalhomes.com. Certified HAFA Specialist, Certified Short Sale Specialist  View My homes for sale at www.ChrisBJohnsonRealtor.com.  Chris Johnson specializes in loan modification assistance and short sales in Ventura County California. Ventura County Loan Modification Help, Ventura County short sales. Ventura County Short Sale Realtor Ventura County CA Short Sales. Ventura County Realtor. Copyright 2012 SFI Marketing Institute, LLC. All Rights Reserved.  Important Notice Chris B Johnson, Prudential Califonia Realty, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why? Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit. However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification. We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale. The views expressed here are Chris B's personal views and do not reflect the views of Prudential Califonia Realty. This information on Ventura County Short Sales: Why A Second Mortgage Is Willing To Negotiate On A Short Sale is provided as a courtesy to our viewers to help them make informed decisions.