[Magpie1972]

So we are fully approved through our lender (we were approved for 330K+ with but are only paying 129K + their 2.2% fee so 131K w/100% financing VA loan). We were totally cleared through our lender (Met Life) so no snags there.

We just got word that their PRIMARY bank approved the short sale. Now we wait until Tuesday evening to hear back from the SECONDARY (!?!) lender... I only thought there was one bank to deal with and I guess we were wrong.

Our real estate agent tells us this is positive news but I wanted to know if anyone has ever heard of it going south with the secondary lender and how long it takes to find out...

This would be incredibly good news if it goes through. I absolutely LOATHE where we are right now. Once this place had a waiting list it was so sought after. Now we have open units and people coming in at 250$ under what we pay a month after being here for 3+ years. Ugh. The people element is shifting, too. In a bad way.

Wish us luck! I'd love some experience sharing and reassurance.

 

[Denvergirlie]

It just means that the sellers have two mortages.

More than likely when they bought they didn't have 20% down, so thus have two mortages. One for 80% and one for the other 20% or some variation like that.

Primary mortage holder would be the 80% part, so now approval needs to come from the secondary mortage.

As for if the 2nd mortage approves, who knows. I've heard cases both ways of both approval as we as rejection.

Good luck thou

 

[mamadonna]

Secondary lenders can definitely hold up the process because they are likely to get nothing from the short sale.

We are currently buying a short sale, too, and we've actually been quite happy with how quickly everything has gone (relatively speaking...). We went into it with the mindset that it could take a really long time, so we've been pleasantly surprised each step of the way that it hasn't really taken that long.

Our short sale doesn't have a secondary lender, though, so I don't have any experience with that. It's one extra step in what already is a sort of cumbersome process, so you probably should expect it to take some time.

Have you had your appraisal done yet? We had full approval and then our appraisal came back low so we had to resubmit everything to the bank...more time. Luckily, for us, though, the bank agreed to come down on the price and so we're moving forward again.

Good luck.