Here’s a story from one of our readers…
“Seller listed home as a short sale for 240k and buyer offered 240k cash second lien of 30k was in agreement of short sale, first lien holder was not. Home was foreclosed. Listed for 240k sold for 232k. seller is now in collection from 2nd lien. Shouldn’t the foreclosure wipe out 2nd lien?”
Sound familiar? It should. At least, it sounds familiar to us.
The banking industry is still in complete disaray. One hand often doesn’t know what the opther is doing. We’ve seen Banks foreclose on themselves – or on an REO buyer of a 2nd DT, when the Bank foreclosed on an undisclosed 1st DT. It truly is the Wild Wild West out there.