We are in a some what unusual situation right now. We are purchasing my
bestfriends home.
We have all our financing approved and were ready to close when our friend
found out that
they are $10,000 short of a total pay off of the 1st and 2nd Mortgage. Sooo
they tried to get
a loan to cover all costs but due to sever financial troubles and their
business (self employed) going belly up no
one will give them the loan. They since have started proceedings to have the
2nd mortgage lien transfered
to their current home but it is taking a long time. In the meantime they
stopped making Mortgage payments
on the house we are buying. They did talk it over with their bank sent them
the Sale Contract and our loan
Approval letter to them to show our intent to purchase. In the meantime we
have moved into the home and
are waiting for this transfer process to happen. Let me back up some we had
to sell our home to make this
purchase. Our friends held onto this house 8 months so we can buy it(yes it
took us 8 months to sell)
.. They made payments up to Feb 1, 2003 then stopped making payments due to
financial and health issues.
We sold our home in April and signed an Agreement to Purchase and deposited
Earnest Money in April for the house we are buying.
It is in April my friend notified the first mort. holder of the aggreement,
sent in the Sales Contract and our Loan Approval letter.
We closed on our home in May. Obviously, we had to move and being as we were
buying our bestfriends house and it was empty
our friends gladly gave us the key and had us move in.
Here we are in the middle of July we just got a foreclosure notice. The
house will be up for Auction on
Nov. 21, 2003. My friend called her mortgage company to find out what it
meant for the pending sale
they said as long as all debt was paid by Nov. 21 we were fine.
We do now have a closing date of Sept. 1st but there are other potential
problems lurking (IRS).
Would it be a good idea to have our friend pursue a Short Sale? We do not
want to loose this home!
It is our dream home.
I have a call into an Attorney for legal advice. I don't fully understand
what a Short Sale is all about.
I do realize to take advice from a newsgroup with a grain of salt. Just
curious what some might do
if they were in the same boat.
Thanks!


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