One of the contingencies of the 1st Lender accepting the short sale is that the 1st Lender wants the 2nd Lender to agree to release the lien for $1,000. The 2nd Lender wants $5,000 and doesn’t want to accept $1,000.00. The balance on the 2nd mortgage is $116,000.
Please explain all my options. Thanks for the help.
Toney
If the 2nd will accept 5K, they will more than likely accept 1K as the auction date approaches. Depending on the market value of the property, 5K may not be such a bad deal.
Short the 2nd, then short the first.
The second is not going to get anything once the first forecloses. They would be crazy not to accept whatever they can get.
Keep working on them. I have dealt with similar situations many times and more than likely as time gets shorter they will agree.
JD
The second MAY not get anything once the first forecloses. If there is equity above what is owed on the first, they second may get something out of the sheriff’s sale. It all depends on the value of the property.
If the second won’t budge off of $5K, can you pay them $4,000 POC (paid outside of closing?). This way, only the remaining $1,000 goes on the HUD-1.