Serious concern in Short Sale negotiation

I am no expert in this but. I believe an evaluation of how much $ the lenders will recover form this deal & how much more they will not recover if they foreclose will help SS handler make an informed decision.

I don't blame the first for demanding that 2nd doesn't get more than 10% - it's up to the second to accept 10% or 0% if they foreclose that's how I'd put it to the 2nd mtg holder.

This is ridiculous. The first mtgee should be concerned with how much it is getting, and let the rest of it alone. I think that a letter to the banking authorities and to the chairman of ING (not the servicer) would be in order here. Based on the limited info provided in this post, it would appear that a "small man" has crept into the process and should be exposed for the idiot he/she is. If the deal is dead there is nothing to lose. Buy maybe the idiot would be stopped from killing other deals.

I hate to be a "nay-sayer" cuz I'm always the Pollyanna but... I had this w/a GMAC 2nd and a WAMU 1st. GMAC wanted 26000 and WAMU would only give them 3k. I even had offers 25k over list but WAMU wouldn't "allow" the 2nd to get more than 3k no matter WHO paid it!!! it ended up going back to WAMU for 100k LESS than what our offers were!!! One would think they'd learn... oh wait... they did... Chase bought them for pennies!!!

Thanks Thomas for being angry and frustrated as I'm. To add up to that, he refused to escalate the call to his manager and e-mailed me that this is the "bank's" final decision. To elaborate more about this SS process: I needed to send 2nd. lender a letter from an attorney for them to act and accept the 25%. Yes. I'm still doing a lot of SS but the length of time in takes and the behavior of the banks to jeopardize our efforts to get THEM out of the mess they got us all into, doesn't stop to amaze me. Those kind of cases need to be presented to the NAR, newspapers and WH to get those banks in-line with strict set of rules that they must follow and stiff penalties if they don't. The first thing should be - unification of "Short Sale" forms that all banks will accept.

Sorry for the lengthy venting, but it is really getting on my nerves that the banks are getting away with every outrageous demand they come-up with. This "wild party" must stop!

Is the 2nd recoursable? Is the 1st guaranteed? If the 1st is guaranteed, there is likely language in the guarantee stating a limit of any sale proceeds can go to any party other than 1st holder (guarantor is not in business to guarantee 2nd loan, even if with same company). The 2nd either accepts this or gets zero with a purchase money second. The "mitigator" will deny any interest or knowledge of this. All the lenders actually know these things. They are trying to run a game on Realtors because most Realtors will try to appease. Just say no.

Thanks Constance. 1st. guaranteed; 2nd. will give complete satisfaction (non recourse); Those are 2 different banks. I talked to 2nd. yesterday and they stand on: "25% or bust" attitude. I know that we should never take it personally but, they are really testing me on this one. If it wasn't out of real concern for the homeowner, I'll do what I really like to do with this one........ Again, sorry for saying it but, I believe I'm among friends and we all have those moments, right?

Steve, I know your pain. I have several under my belt; completed every one I have started, even when my SS coach said it couldn't be done. It goes without saying, our sellers come first and what is best for them is what must be done.

How would this picture (SS) be different if sellers were represented by lawyers instead of Realtors?

Constance, I think it would be worse personally... but that is just me, and the fact that in California we do not use attorneys for any real estate closings, or deals. So that would add a whole unnecessary layer to the mix. What is a short sale coach? Maybe I missed my calling, lo

But , to all those frustrated, and at a road block when seemingly it makes no sense the "bank" has made their final decision. I do hope you all have taken a few minutes to find the executives at that company and have written a succinct letter. Keep it brief. Show what "makes sense." And show what they're proposal is "hurts them." Send it to everyone in that company - president, CEO, VP, public affairs, legal, and anyone in an executive capacity that you can find. Everytime I've done this (all the way to Ken Lewis, and the CEO of Citigroup... ) I've gotten someone to speak to me, the next day ... they've always had someone "look into it."

But it has to be professional and succinct... short and sweet as they say.