What reason does 2nd lender have to not accept short sale after a bankruptcy?


#1

My client has a 2nd with Real Time Resolutions (RTR). My client has not made a payment in 3 years and had a discharge through BK in 2011. The 1st agreed to a short sale but Real Time Resolutions will not agree to the short sale unless the 1st gives them $22K (The debt is over $100K). The alternative is the 1st forecloses leaving the 2nd with $0 and no right of defiency due to the protection of bankruptcy, as I understand it. What reason am I overlooking for RTR to take a position like this? I’d like to save this homeowner from foreclosure if I can.


#2

HI Sheryl,
It sounds like they are simply trying to get whatever they can. The BK has already wiped them out and this is the only “leverage” they have to collect anything. I would ask the question in a different way. Why would they agree to a short sale when they are getting nothing either way? Maybe they are willing to settle for a little less that 22k? My guess is that they will want something and will not do it for free.