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1st Position Lenders ignoring 2nd position Lenders

Posted by Lynn Pineda on October 19, 2009 at 2:42pm
I don't know if anyone else is experiencing this but I have had a number of recent Short Sale approvals come through in which the 1st Lender isn't acknowledging any proceeds of the Short Sale to go to the junior 2nd Lender; written approval with $0 to junior 2nd. I'm having to go back and get the approval letter adjusted and that is just how I'm treating it; I'm bringing it to their attention as if it was a simple oversight by the Lender and they "forgot" to include the $'s. However, what is really going on?I'm just beginning to work out these scenarios and have yet to have responses from the Lenders other than one who has requested a new HUD with the balance owed to the 2nd to reissue to the investor. Can this be an oversight by Lender in not including the amount from the initial HUD that is to go to the 2nd or is there something else going on? You know if these 1st position Lenders were suddenly in the 2nd position that they'd dig their heels in for their money.Have any of you come across this recently?
Tags: Short, approval, junior, lien, sale
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Comments

  • Terry L. Osburn October 24, 2009 at 12:54pm
    If there is an investor involved it could be one of those that are really miffed at what is going on and has decided they will make life miserable for all involved.
    I had one with Countrywide(BofA) where the EXACT purchase price HAD to be something like $209237.39
    Nothing more , nothing less...........Investor By the way took 8 months but closed.
  • Lynn Pineda October 19, 2009 at 3:06pm
    It's incredible, isn't it. It's got me wondering that they're hoping Realtors will give up some of their commission to go towards the 2nd now that Lenders seem to be paying the 6% more readily. I'll see what I get worked out.
  • Wendy Rulnick October 19, 2009 at 2:58pm
    Lynn - I had a recent Suntrust with 0 to Suntrust Bank, the junior lien. I had to beg to get the approval revised.
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