Hi guys and girls!

I just joined this group about a week ago and I find it to be a wealth of information!  I'm sending out an SOS to my fellow Shortsale superstars regarding an issue I've never faced before.

I have a homeowner who has a first lien with Wells Fargo and a second lien with Springleaf Financial. Based on the offer, the Wells Fargo lien will be paid in full and the short sale would be for the Springleaf loan.  However, Springleaf declined the short sale stating that they will not be the only ones taking a loss.  Wells Fargo will not do a short sale as they would be paid in full.

Has anyone else encountered a situation like this and if so, what was the resolution?

Thanks for any imput.

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Could you tell us what the payoffs are on the Wells and Springleaf loans and how much the offer is? It sounds like the person you talked to is a collector more than a loss mitigator which I would expect in smaller banks. Did you ask them who else they wanted to take the loss?  Were they perhaps referring to the seller and/or agents? 

The offer is for 63k and the Wells Fargo balance is about 30k, Springleaf payoff is about 50k.  Springleaf declined the short sale as Wells would have been paid off in full.  The decline came from the short sale department at Springleaf, 

I would phrase it like this ; "what would we need to do in order to get this approved? What are your short sale requirements"? Sometimes when second liens are the only ones taking a loss they get very hard nosed. They sometimes want the seller to kick in money and/or the agents. 

I think you need to remind Springleaf they are in SECOND POSITION - an element they agreed to when they originally made the loan.  If the property goes to foreclosure, they will get only what's left over after all costs have been paid. Of course they may like that since there would be no commissions paid and therefore leaves more for them :-(

Do you have a Preliminary HUD completed and you can provide to Springleaf ?  If they "see" what they will be getting they may be more cooperative.

Also, has the seller been paying both loans ? Or are the in default on the 1st or 2nd or both?

Good luck !

Thank you both for your response!  I just found that the file has been reassigned to another processor.  I had already provided a prelim HUD to them.  I believe the homeowner is not paying the second,only the first.  Let's see what this new rep says.  I'll keep you posted and thanks again :)

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