USB as 2nd-Never accept a short sale, only repayment from seller?

Currently on the buying end of a short where Chase is the first, and USB the second. Was in to USB about doing some investing and was told if I put my money there they could give me direct info on how the SS is going. Interesting. However, I then got an email from the investment person there saying that USB's policy is to never short sale on a 2nd, always insisting on seller making up the deficiency. Have you found this to be true? Is that just 'the party line'? If that's true we are totally sunk as the seller is in huge to USB for this 2nd. For some reason USB gave them a 2nd of $150K on a house w/ zero equity. Their agent is completely incommunicative so we don't know what's still owing but it's got to be in the 100K range. From the buyer's offer, Chase will get 100%, USB will get a small bone (about 10K).

Replies

Bryant Tutas March 16, 2011 at 5:08am

Anna. I haven't had dealings with USB before but have dealt with lenders that would not consider a short sale. Some of these were willing to release the lien so the transaction could close BUT the seller was still on the hook for all of the debt. Not much you can do.

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