First the issue of the 2nd getting money was a small point in my example. The other moving parts were far more difficult issues.
Second, as SD R explained lienholders have th right to ask for whatever they want and as long as the 1st lienholder knows what is going on and it is reflected on the HUD there is no issue at all.
Third, contrary to Tillers examples most short sales do not involved sellers employeed in the business and are carried out properly. The first example may have milked the system and walked rather than doing a short sale thus it would not have been “on the market” if not for their fraudulent transaction and yes that was fraud.
My point was that these things are complex. CAR, you can dream all you want about the way things should be but they never will. The only answer is to figure out how to win under the circumstances you are faced with. There are too many stakeholoders and laws involved in the ownership of real estate that exert their influence on how things must go down. It is and never will be simple or straight forward.
