I just stumbled onto my first short sale opportunity. I have taken a short sale course so I am familiar with the process but this one is very odd & has me confused. Ten years ago a lady set her double wide on land owned by someone else. Somewhere along the line he stopped making his mortgage payments & the lender foreclosed. The land was sold at the courthouse last week. The new owner has given her until Jan 1 to move the dw. She has tried to buy the land from him but for some reason no deal.
There are several problems here: She has no place to move the dw; she has no money to move it if she could find a place to set it; and the dw has a block foundation. She is resigned to losing the home & is already moving her stuff out. She just wants to save her credit. The dw is a 1997 28 x 60 & gorgeous, very well maintained. But the loan payoff is almost $45k. She has a weird negative amortization loan that explains the high balance. This will be a tough sell since she is current on her payments and the home is beautiful. The problem is she, of course, will stop making payments after Jan 1 and the dw will be sitting on land with no lease or contract and an owner who wants it gone. I am not sure what legal status the dw will have then but the lender will certainly have a problem.
I faxed her authorization to let me discuss her loan to the lender (Greentree) last night. Then I got to thinking that this is personal property, a dw with no land. Do I need a HUD-1 & the other stuff since this a mobile home (short) sale?