Im buying a short sale house that has two loans from the seller first lender approve sale second lender wants buyer to pay $ to approv is this right

Asked by Al, California Thu Sep 22, 2011

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7
Harold Sharpe, Agent, LAKE HAVASU CITY, AZ
Sat Sep 24, 2011
It happens, Just plan on looking for another home.

Harold Sharpe - Broker
So Cal Homes Realty
(951) 821-8211
harold@socalhomesrealestate.com
http://www.socalhomesrealestate.com
California Department of Real Estate Broker License # 01312992
0 votes
Melissa Zava…, Agent, Escondido, CA
Thu Sep 22, 2011
Sometimes in the short sale negotiations, the second lien holder will ask for a cash contribution from the seller. Often, if the seller has no money, the buyer or agents may pitch in just to get the deal closed. The first lien holder must approve this contribution on the settlement, and often they will not. So, I'd look into whether the first will allow the contribution before moving forward.
0 votes
Walter 'Skip'…, Agent, Brea, CA
Thu Sep 22, 2011
Hi Al,
As preious answers mentioned this is not uncommon. Before agreeing to anything you need to make sure it is OK with your lender. Also, make sure all monies are included on the HUD1 and done through escrow.
Good luck,
0 votes
Sally Grenier, Agent, Boulder, CO
Thu Sep 22, 2011
This is a common issue with short sales which is why I don't recommend my clients buy them! All lienholders want a piece of the pie, and it is a legitimate request. If they don't get anything, then the short sale doesn't happen and the property goes to foreclosure. You need to decide how badly you want this property, and what you're willing to pay to make it happen.
0 votes
Lyle Wolf, Agent, Morristown, NJ
Thu Sep 22, 2011
This is no short sale unless the second lender agrees. True. . .if the home goes into foreclosure than the second lender gets nothing, but they will often play a game of "chicken" with everyone involved to squeeze more money for themselves out of the deal if they can. Often the negotiator for the second lender gets a share of any addtional money as a bonus. The real issue for you is how much do you want this home? How good of a deal is it, and are you willing to risk losing it over not putting some more money into the pot.
0 votes
Ron Thomas, Agent, Fresno, CA
Thu Sep 22, 2011
Imagine that YOU'RE a Lienholder on someone's property; and they told you "TOUGH" I'm going to pay you!

Wouldn't you fight it.

it is probably worth it to offer a couple thou to get them to accept.

and YES, it is legal and right.

Good luck and may God bless
0 votes
, ,
Thu Sep 22, 2011
2nd lender may not get any money if it goes to foreclosure. This way they get something. It's legit as far as I know.

Happy funding, Rudi
Web Reference:  http://www.umboc.com
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