The second mortgage bank has yet to sign the offer and we have missed two closing dates thus far. I was told today by the listing agent that the second mortgage bank is stalling in the hopes that it will go to foreclosure so they can go after the sellers for more money. There are laws that prohibit a second mortgagee from intentionally holding up the short sale process, but I have no idea how to prove this. The 8 potential sellers gave up on this process, but I have no intention to give up. Has anyone else been in this situation? Are there legal options?
Micah Riley, Realtor
Cutler Real Estate
I recently experienced this representing the seller, lots of back and forth with the two on wittling the amount wanted down to get the deal closed.
All answers below are good ones. In addition, you need to make sure what is stated from 1st lienholder in settlement letter and terms of acceptance of offer that they are not very strict and matter of fact on what 2nd lienholder gets. Some will have a issue, potentially even killing the deal, even if it is taken care of in a legal manner.
Id suggest to consult your Realtor. Thats what he/she is their for, to help you.:)
This is very common with two liens on a home. Of course they can't compell you to pay them but if you want a home free and clear of any liens you have to do something. The first position investor may be will and good to release their lien on the home but the second is not always so accommadating. But, they will negotiate. All they want is the money and they don't care from whom before they release their lien. Of course the buyer could buy the home anyway with the lien attached if they waive their condition to a marketable title, free of liens and encumbarances,of course no one wants to do this.
Try to negotiate with them and offer starting at around $250.00. In the long run it depends on how much you want the home.
All the best,