City Lien Demands To Write Offer

We are facilitating a short sale currently that has a first mortgage with Wells Fargo and a subordinate lien with the City which appears to have been a down payment assistance program. An offer was submitted to the 1st and 2nd mortgage, once reviewed, the 2nd lien denied the short sale. When inquired about the denial they stated they felt they had the right to purchase the property before another buyer. They requested that the agent write them up an offer on the property and that it be submitted to the senior lien holder. This could be beneficial to the transaction as they would waive their lien if they could purchase the property, but it is not a common occurrence to have a lien holder require that they are the ones who try to purchase a property through a short sale.

Having been involved in over a thousand short sales, you still see new things all the time. It’s an ever evolving industry and with countless investors and mortgage servicers, you are always running into something new. If you have any questions about anything short sale or loss mitigation related, please fill out the form below for a free consultation.

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