I’m trying to put together a short-sale, and the 1st and 2nd lien-holders (who are each big lenders) both say that they cannot accept an offer until THE OTHER gives a commitment letter first.

The first is friendly enough, and verbally speaks of having some leaway in dealing with me. He has faxed me a non-binding counter-offer that is too high anyway. Although I shared that faxed counter-offer with the second, the rep from the second says that until I get a firm commitment letter on the first’s letterhead, they will not submit my offer to committee. He said that they know they will be wiped out at auction, but the dense-sounding rep refuses to bother his supervisor with it. I have left two voicemails for the supervisor in the last month, but she does not return my calls.

We still have about three months until auction, but I am not in a position to buy it at auction, so I would lose this deal if nothing changes. Any help or ideas?

Thanks, as always,
Jerry in Illinois