Hello Superstars! I've close many difficult short sales, even ones with 3 loans, a couple easy, most of them with hurdles, BUT this one tops them all, so I thought I'd come to the experts again, and get your input and any tips you can offer in dealing with Green Tree.  We have a $47K 2nd lien with GT for the pool.  Our 1st is Wachovia, working things out on both, where we have 2 actual approvals, HOWEVER, GT lanuage states, they will release the mortgage lien to close the Short Sale, however the entire BALANCE of the NOTE will continue to be Due and Payable to GT. WOW! I've never seen such wording, that is clear as day, however... Wachovia's approval letter states that NO ONE including the 2nd identified as GT will receive no additional proceeds from the sale.  This sounds conflicting.  They are both agreeing to the Short Sale, one without deficiency language and language stating no additional funds, however the other stating the seller will still owe the balance.  Not only that, but in CA there is a new law as of July 15, that states there can be no deficiency collection from 1st or 2nd in 1-4 unit residentials after a short sale has closed, HOWEVER, if the borrower (seller) agrees to a deficiency settlement (or volunteers to agree), which is what the letter states, then they are bound to it!!!! UGH!!!

Anyone have any tips on gettting GT to removed the deficiency language.  They claim they will remove it for a mear $13K+ on a $47K loan owed to them and on a $215K sale.  Sellers won't go into deeper debt to come up with the $13K, for a pool that is being sold with the house.  I'm NOT a quitter, I believe there is ALWAYS a way and that some of you may have had experience with something similar.  ANY TIPS OR Resources I can use to get past this.  Oh by the way, we have a TS date of 8-9-11, which we are in process of attempting to postpone, it is the 1st so we are working on it.  Thanks in advance.