Following yesterday’s post – I don’t call lenders dumb . . . but sometimes they’re good for solid laugh. Check this one out. These are actual emails from lenders.
From the lender in 1st position:
Being in first lien position, our investor gets to make the decision as to how much the 2nd can receive on a short sale – both from the net proceeds and as their total payoff. They require the 2nd’s Release letter upfront as part of our submission stating that they will agree to release their lien for the proposed amount. Basically, at this point, if the 2nd will not issue a Release letter upfront stating they will agree to this – then we will not be able to do a short sale on this loan.
From the lender in 2nd position:
I’ve been doing this for 4 years and have never submitted approval before the 1st issues their approval. Neither has anyone on my team. This may be this particular lenders policy, but not how we operate. I cannot issue an approval until I have the approval from the 1st and can verify their offer to us, that is the way it always goes, the 1st is in superior position so they dictate the terms. I’ll decline the file and let our legal dept pursue our note.
What are you in kindergarten!? You go first . . . no you go first . . .no you go
We actually see this all the time and a skilled short sale negotiator can often get these two kindergartners to play nicely and get along . . . so this deal isn’t dead yet.
I’m not going to call lenders dumb, but in a week where the big banks are on a publicity blitz to promote how seriously they are taking foreclosure avoidance and short sales – here’s what’s really going on behind the PR campaign.
