Short Sale: 2nd lender=extortionist?

[UCGal]

Jim the Realtor has posted about some not-so-legit cases – where it’s NOT listed on the HUD report.

I think the OP has the right attitude – to not do it if it’s not recorded and listed.

From what I’ve read – there are times the 1st lender figures if you’ve got $20k more – they get it… After all, they’re first in line.

What it comes down to – is it still in the price range you’re willing to pay at $20k more. Can you get the 1st to accept payment to the 2nd… If both of those are ok – then go for it.

[MrsKryten]

[quote=SD Realtor]

It is in all likelihood legit…. When you close escrow, where all the money went will be on the HUD report including which lender got what monies.

************

Unfortunately I do not believe anyone has defrauded you in any manner.[/quote]

Thanks, SD Realtor, for the real world explanation and advice. I hope you’re right that the 2nd lender’s intentions are legit and everything will be on the HUD statement. Dealing with the seller’s agent (one of these “short sale experts”) has not always been easy during this past year so my mind went to the worst case scenario. I will know more on Monday morning but will try to keep positive until then.

As for the fraud issue…if the money paid to the 2nd lender is undisclosed, I believe that it’s the 1st lender that would be the party being defrauded, not me, and that they can cancel the sale or sue all parties for damages. I would be one of the bad guys under this scenario which is why my agent and I won’t be involved unless the money is fully disclosed to the 1st lender.

[MrsKryten]

[quote=SD Realtor]

It is in all likelihood legit…. When you close escrow, where all the money went will be on the HUD report including which lender got what monies.

************

Unfortunately I do not believe anyone has defrauded you in any manner.[/quote]

Thanks, SD Realtor, for the real world explanation and advice. I hope you’re right that the 2nd lender’s intentions are legit and everything will be on the HUD statement. Dealing with the seller’s agent (one of these “short sale experts”) has not always been easy during this past year so my mind went to the worst case scenario. I will know more on Monday morning but will try to keep positive until then.

As for the fraud issue…if the money paid to the 2nd lender is undisclosed, I believe that it’s the 1st lender that would be the party being defrauded, not me, and that they can cancel the sale or sue all parties for damages. I would be one of the bad guys under this scenario which is why my agent and I won’t be involved unless the money is fully disclosed to the 1st lender.

[MrsKryten]

[quote=SD Realtor]

It is in all likelihood legit…. When you close escrow, where all the money went will be on the HUD report including which lender got what monies.

************

Unfortunately I do not believe anyone has defrauded you in any manner.[/quote]

Thanks, SD Realtor, for the real world explanation and advice. I hope you’re right that the 2nd lender’s intentions are legit and everything will be on the HUD statement. Dealing with the seller’s agent (one of these “short sale experts”) has not always been easy during this past year so my mind went to the worst case scenario. I will know more on Monday morning but will try to keep positive until then.

As for the fraud issue…if the money paid to the 2nd lender is undisclosed, I believe that it’s the 1st lender that would be the party being defrauded, not me, and that they can cancel the sale or sue all parties for damages. I would be one of the bad guys under this scenario which is why my agent and I won’t be involved unless the money is fully disclosed to the 1st lender.

[MrsKryten]

[quote=SD Realtor]

It is in all likelihood legit…. When you close escrow, where all the money went will be on the HUD report including which lender got what monies.

************

Unfortunately I do not believe anyone has defrauded you in any manner.[/quote]

Thanks, SD Realtor, for the real world explanation and advice. I hope you’re right that the 2nd lender’s intentions are legit and everything will be on the HUD statement. Dealing with the seller’s agent (one of these “short sale experts”) has not always been easy during this past year so my mind went to the worst case scenario. I will know more on Monday morning but will try to keep positive until then.

As for the fraud issue…if the money paid to the 2nd lender is undisclosed, I believe that it’s the 1st lender that would be the party being defrauded, not me, and that they can cancel the sale or sue all parties for damages. I would be one of the bad guys under this scenario which is why my agent and I won’t be involved unless the money is fully disclosed to the 1st lender.

[MrsKryten]

[quote=SD Realtor]

It is in all likelihood legit…. When you close escrow, where all the money went will be on the HUD report including which lender got what monies.

************

Unfortunately I do not believe anyone has defrauded you in any manner.[/quote]

Thanks, SD Realtor, for the real world explanation and advice. I hope you’re right that the 2nd lender’s intentions are legit and everything will be on the HUD statement. Dealing with the seller’s agent (one of these “short sale experts”) has not always been easy during this past year so my mind went to the worst case scenario. I will know more on Monday morning but will try to keep positive until then.

As for the fraud issue…if the money paid to the 2nd lender is undisclosed, I believe that it’s the 1st lender that would be the party being defrauded, not me, and that they can cancel the sale or sue all parties for damages. I would be one of the bad guys under this scenario which is why my agent and I won’t be involved unless the money is fully disclosed to the 1st lender.

[MrsKryten]

[quote=DataAgent]How is this extortion? The 2nd lender has legal rights to the property. They are offering to release those rights at a discount to the owed amount. Sounds like you’re getting a good deal.[/quote]

If I can buy the house with all payments documented as part of the sale, then it’s all good. My concern is that the 2nd lender wants an undisclosed payment, and that is illegal. I’m going to snap out of the negative thinking for now until I find out the details on Monday.

[MrsKryten]

[quote=DataAgent]How is this extortion? The 2nd lender has legal rights to the property. They are offering to release those rights at a discount to the owed amount. Sounds like you’re getting a good deal.[/quote]

If I can buy the house with all payments documented as part of the sale, then it’s all good. My concern is that the 2nd lender wants an undisclosed payment, and that is illegal. I’m going to snap out of the negative thinking for now until I find out the details on Monday.

[MrsKryten]

[quote=DataAgent]How is this extortion? The 2nd lender has legal rights to the property. They are offering to release those rights at a discount to the owed amount. Sounds like you’re getting a good deal.[/quote]

If I can buy the house with all payments documented as part of the sale, then it’s all good. My concern is that the 2nd lender wants an undisclosed payment, and that is illegal. I’m going to snap out of the negative thinking for now until I find out the details on Monday.

[MrsKryten]

[quote=DataAgent]How is this extortion? The 2nd lender has legal rights to the property. They are offering to release those rights at a discount to the owed amount. Sounds like you’re getting a good deal.[/quote]

If I can buy the house with all payments documented as part of the sale, then it’s all good. My concern is that the 2nd lender wants an undisclosed payment, and that is illegal. I’m going to snap out of the negative thinking for now until I find out the details on Monday.

[MrsKryten]

[quote=DataAgent]How is this extortion? The 2nd lender has legal rights to the property. They are offering to release those rights at a discount to the owed amount. Sounds like you’re getting a good deal.[/quote]

If I can buy the house with all payments documented as part of the sale, then it’s all good. My concern is that the 2nd lender wants an undisclosed payment, and that is illegal. I’m going to snap out of the negative thinking for now until I find out the details on Monday.

[SD Realtor]

Krysten what Jim pointed out was much more the exception then the rule. There is a balance you want to strike when trying to get a short sale through when there are two lenders. Remember the first is always going to want all the money and they are in a position to be that way because they are in first position. As long as all the money is on the FINAL hud then that is what is most important. In that way everything will be accounted for and above board.

[SD Realtor]

Krysten what Jim pointed out was much more the exception then the rule. There is a balance you want to strike when trying to get a short sale through when there are two lenders. Remember the first is always going to want all the money and they are in a position to be that way because they are in first position. As long as all the money is on the FINAL hud then that is what is most important. In that way everything will be accounted for and above board.

[SD Realtor]

Krysten what Jim pointed out was much more the exception then the rule. There is a balance you want to strike when trying to get a short sale through when there are two lenders. Remember the first is always going to want all the money and they are in a position to be that way because they are in first position. As long as all the money is on the FINAL hud then that is what is most important. In that way everything will be accounted for and above board.

[SD Realtor]

Krysten what Jim pointed out was much more the exception then the rule. There is a balance you want to strike when trying to get a short sale through when there are two lenders. Remember the first is always going to want all the money and they are in a position to be that way because they are in first position. As long as all the money is on the FINAL hud then that is what is most important. In that way everything will be accounted for and above board.

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