Honestly, I haven't had very many issues with 2nd lienholders in quite some time. Until now. 1st is Freddie Mac ($6K to 2nd) and approved. 2nd is Webster Bank - they want the Seller to either pay them a settlement fee or sign a promissory note prior to and outside of closing and not reflected on the HUD. In return, Webster Bank claims that they will then release the lien and we can then move forward with the short sale without a 2nd lien. Seller has a health hardship, but owns another property that will be the residence upon closing. At this point, I have an approval letter from the 1st and denial letter from the 2nd due to "insufficient offer."
Any suggestions would be greatly appreciated!
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Sounds like they are putting you in an extremely tough spot. Some of these small credit unions and services will do things like this at times. Have you spoken to management contacts at the 2nd?
Brett@ishortsalenow.com
310-564-6389
www.ishortsalenow.com
No. Guess that is where I shall move from here. The 18th was the deadline to obtain both approval letters for this Buyer.
I'd be trying to educate them on Freddie Mac guidelines and provide them with proof of that the investor ont he 1st is Freddie Mac. It sounds like they may know that so they are trying to have something done outside of escrow. What state are you in?
Florida. And, yes, they are aware of the Freddie Mac guidelines because they even mentioned the $6K vs. deficiency waiver.