Short sale third lien with high counter

Hi we are buyer of a short sale with three liens. We got lenders response back from first and third lien holders. Third lien came back with high non negotiable amount. Based on the value of the home, if the home forecloses, third lien will not get anything. Any ideas why the third lien would request a high non neogtiable amount? Side note this site is great, its informative and has been very helpful

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Permalink Reply by Kevin - Greenville, SC on December 4, 2011 at 7:27pm

Maybe not negotiable today, but things change.... I can't tell you how many times I been told this is not negotiable...

People change, situations change. 

Permalink Reply by Janis Schade on December 5, 2011 at 9:12am

As a Short Sale Advisor,I believe there are still obligations from homeowners to fulfill their debt contracts to some degree. Because the third lien holder doesn't want to waive their debt doesn't mean the deal is completely dead.  It just means that they may need to sign an agreement to pay the debt of the third lien holder, in some form of a payment plan.

Permalink Reply by SSbuyer on December 5, 2011 at 12:22pm

James -- another possibility is mortgage insurance.  If the loan forecloses, the third lien's MI will pay them.  But it the 3rd settles for some amount and then tries to collect from the MI for any difference, they might get nothing from MI.  In the end, they might end up with more money if the loan is foreclosed than by agreeing to a lower payment.

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