“Why bother listing if you did 100% financing and are already 20% underwater and can’t afford the short sale?”
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nsr – what do mean by “can’t afford the short sale?” Can’t someone submit a deal to the lender where there is little if any $$ out of pocket from the seller?
the scenario where someone is already 20% underwater on a 100% financing deal (80/20) is pretty interesting, since 2nd position is already wiped out and has no incentive to approve a short sale. if it’s an original non-recourse purchase money loan, i wonder what would happen if the owner just stopped paying the 2nd but kept paying the 1st. what is the 2nd going to do, start the expensive foreclosure process when they already know they’re going to come out with nothing? or will they simply sit in 2nd position, hope that the owner stays current on the 1st and wait it out until the property appreciates before taking some action? hmmmmm….hadn’t thought of this scenario – very interesting.
