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Replies (1)
- B Mike West
- Contributions:240
Absolutely. The third lien holder will decide to approve a short sale request only if they will get more from that approval than they would by selling the note to a collection agency. If the home goes into foreclosure the collection agency will go after the seller with a dificiency judgement, collecting all or a large portion of the note amount. They will pester the seller until a satisfactory payment is made.
It is all a matter of minimizing their financial loss. The borrower/seller's obligation only ends if they approve the short sale or if the collection agency collects an acceptable amount.
Trying to buy a short sale property with three liens against it will be a difficult task at best. All three lenders have to approve the short sale.
If you like the home well enough you may consider paying off the amount demanded, negotiate for a slightly lower amount and pay that, or walk away and find a short sale with only one lien; a process that has a much higher chance of success. Buying a bank owned home would be much faster and easier.
Also note that you have not yet had to deal with the second lien holder. Their story may be similar to that of the third lien holder.
Good luck to you.
It is all a matter of minimizing their financial loss. The borrower/seller's obligation only ends if they approve the short sale or if the collection agency collects an acceptable amount.
Trying to buy a short sale property with three liens against it will be a difficult task at best. All three lenders have to approve the short sale.
If you like the home well enough you may consider paying off the amount demanded, negotiate for a slightly lower amount and pay that, or walk away and find a short sale with only one lien; a process that has a much higher chance of success. Buying a bank owned home would be much faster and easier.
Also note that you have not yet had to deal with the second lien holder. Their story may be similar to that of the third lien holder.
Good luck to you.
Short sale banks tequesting high amount in third lien
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