Made an offer on a house. The house would be sold based on a short sale. 1st mortgage is ok with it, Wells Fargo, 2nd mortgage, is dragging their feet. Foreclosure is 3 weeks away. Should I be ready for Wells Fargo to kill the deal?
by 
steelersfan
ANSWERS: 1
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I am trying to figure out whether you mean that at the present time there are two mortgages on the house you are buying or whether you are taking out two mortgages to buy the house. I am going to respond with the supposition that there are two mortgages on the house you are buying. The answer to your question depends on how much of a lien Wells Fargo has on the house. They may be considering buying it at the sheriff's sale (at foreclosure) to protect their interest in the property. If they do not, and the 1st mortgagee forecloses, the 2nd is out the money completely. In a short sale, if there is enough money to completely pay off the 1st, well, they are entitled to that money since they are in 1st position. The remainder would go to the 2nd, so obviously they might be hesitant to take a short sale. If their lien on the property is high enough, they might find it in their best interest to buy the first lien at the foreclosure sale and then put it on the market themselves.
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