Video Marketing and Mortgage News Designed for Mortgage and Real Estate Sales

Wild Turkey: (January 21, 2010 11:48am)

I was working with Indymac, the second and they wanted 10k. The First would only allow 5k. Indymac sent me two demands. One to the escrow for 5k and the other to me, the realtor for 5k. The 5k in escrow and on the HUD1, and 5k from me outside of escrow, not on the HUD1. The second was totally not negotiable. The First now owns the property. I was making less than 5k and my attorneys fees could possibly be over 10k and jail time.

Anonymous: (January 20, 2010 7:44pm)

Can the new 90 day window from HUD for purchases be for investors buying an investment property?

Carol : (January 20, 2010 7:16am)

Shared your info on 2nd lien holders demanding cash to cooperate with my Realtor database yesterday. Immediately got responses wanting to know where to report these bad boys... can you give me a name/number to share?

Flipper: (January 20, 2010 5:53am)

As to this whole new FHA flip relaxation....there is no point to it. Lets say you bought a property for 100K rehabbed it and spent 10k doing so.Now you are into property for 110k. Now you have to sell the property. Depending on your location, could be anywhere from 8-10%. If you purchased the home for 100K the max profit you are allowed to make on the property is 20k? Essentially you are at a break even point. All of these investors would not be in business if they followed this guideline. Just does not make sense. Why would they not allow a 20% profit after all costs?

dd: (January 20, 2010 2:43am)

New twist. Lenders are selling their seconds to collection agencies while the short sale process is underway. The collection agency then becomes the big bandito holding up the short sale. Citi Bank pulled this on one of my buyers. The $14,000 was on the HUD, but you couldn't tell what it was. I thought the seller's negotiator was going to have a heart attack when I e-mailed the first telling them what the real purchase price was. The first just shined it on. The buyer paid most of it. Some of it may have gone to the escrow officer who was also negotiating for the seller. Lots of funny stuff out there. Perhaps the bank short sale departments needs to be taken over by the Marine Corps. They tend to get things done in a no nonsense way with integrity thrown in! If the Marine's can go to Hati, why not rescue the economy by taking over problems that the Banks cannot seem to resolve and rescuing homeowners who are victims of some shady dealings and fancy footwork.

FLMTGBKR: (January 19, 2010 8:54pm)

Any thoughts of having another 2010 GFE webinar?

bSmart: (January 19, 2010 1:59pm)

Banks committing fraud? Are you surprised? What do you think got us into this mess in the first place. HELLO!

Anonymous: (January 19, 2010 1:32pm)

Khai McBride, worth what I paid

Many Charles: (January 19, 2010 1:24pm)

Kim, I thing the agent is simple trying to include the negotiation fee as part of the closing process. The only way that I know you can do that is though by adding a closing cost credit to cover the fee. It fact I just did one today. The only thing is the lender may not accept it as a fee associated in closing the loan. I just had another one where the buyer agreed to paid the fee as a convenience that the short sale is completed an does not have to wait.

JIM: (January 19, 2010 1:14pm)

not to chance the subject - but any new news on hvcc

Kim: (January 19, 2010 1:03pm)

I have a client making an offer today. She is pre- approved FHA. I recieved a call today from her agent asking me if the 2% Third party, Shortsale, negotiating company fee, is allowed to be funded in the FHA loan. I had not heard of this and neither had the FHA Lender! I still have no answer to give them. What do you think?

Manny Charles: (January 19, 2010 11:27am)

Thank you guys. I did not expect to get TREMENDOUS response on my Comments about investors purchasing short sale properties to flip.(see previous entree on Manny Charles) I can not respond to all the emails today, however I promised that I will send you a video presentation outlining how does flipping short sales for profit really works and how you can get more leads from this "Nija" process..! for the FREE VIDEO email me MANNYCHARLES@HOTMAIL.COM For now here is the outline: *Short sales start on day one (instead of waiting for a buyer to start the process) *Investors could complete the gap on what the second, or other liens,judgments,.... may want in extra compensation in order to facilitate the closing of the property. *An option contract is use in lieu of a regular purchased contract. *The realtors gets paid on both side of the transaction (meaning the sale of the property and the purchase to the end buyer). *realtors can compete with REOS with an approved short sales listing..

Corey: (January 19, 2010 11:23am)

Penny in FL: In A non disclosure state, that is not correct. He is right that there is no way via the public records to find out how much someone paid. Well, actually I take that back. Most people in Utah use loans and large down payments are pretty rare. So if you look up how much of a loan they took out by viewing the deed of trust you can guess how much. But as for a flip on a back to back transaction the new lender is just going to ask for a copy of the HUD from the previous sale.

Lolab: (January 19, 2010 10:26am)

I was involved in a transaction with WELLS FARGO within the last two weeks where they where actually trying to get me to give up 2% commission so that the buyer's agent & I would split 4%. What eneded up happening is I did have to give up 1% and the seller's had to come in with $5000 and a second mortgage where the seller's owed only $50,000 and they ended up with $13,320. Otherwise they would not do the transaction. But there is nothing we could do.

Corey: (January 19, 2010 10:11am)

Oh and the guy that says we should solve this problem by having people share the misery, like each lender gets a pro rata amount. That sounds really good when you say it, but you would have to either A. Get the parties (lenders) to agree to it in writing (not going to happen) or B. Have legal authority to over ride the existing contracts (mortgages) such as what Sen. Dodd and others suggested when they talked about letting BK Judges modify mortgages. In order to accomplish what you suggest you have to remove the basis of our free economic society which is the ability to enter into binding contracts between consenting parties. You cant force them to comply, and they are not likely to comply on their own as it is only in the best interests of the junior lien holders to go along with your suggestion.

Penny in Florida: (January 19, 2010 10:09am)

To Mortgage & Real Estae Dude I am in Florida and if the purchase price is not written on the top of the recorded deed, the amount of the documentary stamps will tell you what the sales price was. Example, if the doc stamps paid were 700.00 then the sales price was $100,000 because the stamps are 70¢ per $100. I am sure that in any county where you can actually look up the recorded documents you can learn the sales price. Also, in our state, you can go to the property appraiser and do a search for recent sales and it includes FSBO's. You may have to do a little research and not rely on the information others may provide. Just about anything pertaining to real estate can be verified.

Corey: (January 19, 2010 10:06am)

Mortgage and Real Estate Dude, Ive been in Mortgages and RE in Utah for over 10 years. Yes its a non disclosure state, but were talking about the new lender here. ON the new buyers side. They ask for a copy of the HUD from the previous sale. Thats how they get it.

BrokeBroker: (January 19, 2010 10:05am)

dear anonymous, yes the banks have a shared loss agreement that compensates them for losses through foreclosure and not through a short sale. I've read IndyMac (now One West owner by Soros and Dell) is taking full advantage of making more money through a foreclosure, www.iamfacingforeclosure.com I am a proponent of free enterprise but don't argue that gov't hasn't already injected laws into every phase of the economy. In the case of the housing bubble, the lack of regulation and reserve requirements for CDOs and derivatives plus neglected oversight in credit rating allowed for securitization of 100% non owner/option arms/stated-stated debts at WAY OVER VALUE which created this mess. So, make a few laws to assist homeowners in getting out of it and stop the gravy train that goes only to banks.

Anonymous: (January 19, 2010 9:27am)

BrokerBroker, please remember the seller still owns the house, signs the paperwork and lives with the results of the transaction. I, for one, do not want the government regulating one more thing that is a free enterprise endeavor. Oh, I forgot, the government already has its' hands in our business. I'm wondering, what are the government incentives already in place that encourage a lender to foreclose rather than complete a short sale? I heard a rumor that there are banks out there buying "non-performing" loans at a steep discount (50% of face amount of loan) and then being compensated by stimulus money to the tune of 80% or the face amount = 30% profit and then they profit again when they sell the foreclosed property. One rumor said that one of the banks doing heavy purchasing of non performing loans had George Soros (Move-on.org) as an investor. Does anyone have additional info on this sort of thing?

Mortgage & Real Estate Dude: (January 19, 2010 9:20am)

In addition to previous post: Non-disclosure state(s), Utah for one, there is not ONE State, County, or City document that records a purchase price if the property is nor listed and SOLD by a real estate agent. For sale by owner, etc, etc. If its not on the MLS, the sales price is not recorded.

Mortgage & Real Estate Dude: (January 19, 2010 9:13am)

State of Utah is non-disclosure state: If a property is purchased at auction, there is not ONE recorded document that shows what the seller paid for the property. How will the new FHA loan be able to determine the 20% cap of acquisition? It looks as if I will need to contact all reps to see if they will even allow this 90 day exception in Utah.

BrokeBroker: (January 19, 2010 9:02am)

In order to facilitate short sales, the law should be that the proportion of the sales price to the existing liens be paid to each lien holder AND the transaction must be approved. For example, 500k in liens, sales price 400k, each lien holder get 75% of lien balance. Sales price determined by the first lien holder after 30 days on the market with initial BPOs, all offers and an appraisal done by an independent appraiser paid for by TARP. Additionally, any leftover TARP funds should be used to pay lien holders a percentage of their losses. Let's fix this GD market and stop perpetuating the mess.

OC Independant Broker/Realtor: (January 19, 2010 8:59am)

Re-OC MONEY Guy- That particular company is always one step ahead in that arena. They used to have a HOT web site that was only for their clients/agents till Association went after them and had to shut it down but never heard of a fine(probably got a serious talking to)but made millions while the site was up. I have the same experiences - the properties are in the Sunday paper but they will not show them and say they have no control over what gets advertised????. One agent(advertising in paper) refers to other in company agents in the company so they get the calls to show. Plus if you call on the 800 line they bug you for 6 months. The list gets circulated to the entire company!!!

FedUp: (January 19, 2010 8:42am)

I had both ends of a short sale last week with an offer of $263,000. Client owed US Bank $300,000 on the first, 100,000 on the second. US Bank would only give Wells Fargo $4,000 on the second. Wells hands were tied ($4,000 or nothing) but agreed to it. Not aware of any outside money. Still though, US Bank would not take the short sale offer. They were determind to send the property to auction regardless that all paperwork was in order etc. They ended up selling it for $212,000. Wished I'd scraped enough cash from friends to bid but couldn't believe the banks were that stupid to set the bid so low. The banks don't seem to care, bailout money, not their money, foreclosure incentive etc. OR is it collusion? Inside setting low bid to their friends on the courtroom steps?

Pat: (January 19, 2010 8:35am)

Where can I go to get a copy of the new waiver mentioned for FHA?

Nuke 'em 'til they Glow and shoot them in the Dark!: (January 19, 2010 8:28am)

As I've said before the majority of realtors are incompetent idiots. It's amazing that they can even pass the test. They are the most unprofessional group of people that I have ever met and I held that position long before in mortgages. In the past year I've seen numerous situations where they have engages in numerous violations of RESPA and their own codes of ethics. Cash payments to service providers in unmarked envelopes are the norm. Sadly it is so rampant that state regulators can't even keep up. Now there is plenty of blame to go around because I got one banker booted out of the business so If I see it the way I feel about it is that if you don't report willful violations (ignorance is one thing) then you are an accomplice if you don't report it. Everyone bemoans what is going on but we also need to police ourselves.

Manny Charles(the short sale king): (January 19, 2010 8:28am)

Ravin and Brandy P. Send those dead dead short short sale leads to us, to see if we can help the sellers from coming with money at the table. Mannycharles@Hotmail.com

CB DUDE: (January 19, 2010 8:25am)

how do you stop from getting email alerts from this page? HELP!

MortgageGod: (January 19, 2010 8:24am)

Frank, Why audio only from the Video GURU???

MortgageGod: (January 19, 2010 8:21am)

Thanks Frank for the Resolution... and as far as the bloopers, oh well, HECM, HCEM, ARM or ARM'S the message was delivered.

Bryce: (January 19, 2010 8:19am)

Sales Training Summit UPDATE! During last minute checks to make sure everything was ready to go this morning, one of the settings was changed that activated the sessions on time. It took a bit this morning to find the right setting and get it put back the correct way. That has now been done and the first two sessions are LIVE now. If you haven't signed up yet, go ahead and sign up now, you've got today, tomorrow and Thursday to get the fantastic sales training our faculty presented in these 12 sessions. Again-I apologize for the hick up this morning. www.SalesTrainingSummit.com

HVCC SUCKS: (January 19, 2010 8:14am)

UH OH.......EARTHQUAKE IN THE CAYMAN"S....get out your checkbooks....

Frank Garay: (January 19, 2010 8:12am)

Summit Issues Resolved - Sorry for the tech issues guys. It's all good now. You haven't missed anything. It's rolling for the next 4 hours, so tune in anytime and you'll get the content. One of those "virtual switches" was flipped the wrong way. Go for it, and our apologies again.

BradyP: (January 19, 2010 8:08am)

I do a lot of short sale negotiations for myself as well as for other agents. This has been a common occurrence in the past, but I see some banks (especially 1st position) stating that no money outside of HUD shall go to any party. What the guys failed to point out is how this "outside" of HUD money swapping is lowering property values since the sale amount is not accurate, thereby hurting the market with inaccurate market values as well as not allowing proper collection of tax revenue for county & state. I have had many lenders approach me about money outside of closing. None of those transactions closed. One client came to me AFTER he had paid a 2nd $8k outside of closing, only to be denied final approval from the first.... can you say goodbye $8k?

Frank Garay: (January 19, 2010 8:08am)

Thanks El Santo.. I also said "Arm Length's" instead of "Arms Length" by accident... wonder why no one called me out on that? Figured I'd get blasted!

Frank Garay: (January 19, 2010 8:05am)

Summit Issues... Sorry for any issues guys.. I'll get the man in charge of the Summit to address it ASAP. I promise you'll get what you signed up for.

Ravin: (January 19, 2010 8:02am)

Had a transaction fall thru a week ago because the 2nd decided to demand more money outside escrow and the borrower couldn't afford...otherwise I know they would have jumped at the chance as they loved the house...unbelievable. Where there's a scam there's a way!

can't tell time: (January 19, 2010 8:02am)

Summit is finally on, seems they can't tell time

No HELP: (January 19, 2010 7:55am)

Seems there was a lot of Hype, but no HELP! on the Summit. Not the best way to start out, do you think?

joecolorado: (January 19, 2010 7:54am)

please set me straight as I am naive about these things, The 2nd has a higher loan rate(hence a greater return for their investment) than the 1st due to the risk involved and the 2nd's U/W involved ok's the 2nds loan, then the 2nd wants the investment back if there is a default? Isnt that like going to Las Vegas and asking for your money back when you lose!

AZ Mortgage GUY: (January 19, 2010 7:44am)

Hey Frank, I am not able to login to the sales summit AND not able to download any audio with my Gold Membership. Can you address this please?

El Santo: (January 19, 2010 7:43am)

They are called HECM not HEMC for reverse mortgages...

MortgageGod: (January 19, 2010 7:41am)

noting on Sales Training here either, what a waste of time!

Charles: (January 19, 2010 7:40am)

The fact that Coakley ran a bad campaign and that she thought Schilling was a Yankees fan, should cost her the election. Can Republicans finally show a little class? It's bad enough that people yell that she should be raped at his campaign event and he basically agrees. But to see the Facebook posts where people are demanding she be raped or killed is really beyond the pale. To endorse that behavior is sad, but not shocking considering the people doing it.

Manny Charles: (January 19, 2010 7:37am)

Cb, Corey is right it is not fraudulent for the lenders to ask for a promissory note.Most of the times we get the bad debt waived because the investors sometimes will kick in some extra money from their profit to use it as negotiation tool to entice the 2nd lien holder to release the the sellers from further obligation. This is why are success rate is so high!!! Another reason why we use the middleman to flip short sale properties. Every LO should participate in looking out their data based and look for those dead deals to generate New buys. (upside down clients, failed loan mod, lost their job, need to move,bad credit can not refi....(If you hand over deals like I described to realtors that understands property flipping , you the LO would be the first person in line to get these buyers). For every listing my LO gets about 1-5 leads PER WEEK on these short sales. With the new FHA ruling on flipping you guys should make a killing.

MD: (January 19, 2010 7:33am)

not getting anything either.

bongosdad: (January 19, 2010 7:32am)

FRANK where are you no webinar going on???

Topher: (January 19, 2010 7:27am)

I'm not getting Frank or Tracey Rumsey???

Corey: (January 19, 2010 7:19am)

CB, Not fraudulent, but why would a buyer agree to take on a sellers bad debt? Makes no sense to me

Corey: (January 19, 2010 7:18am)

Dirk, 1st Lien Holders will not do a Deed In Lieu if there is a Jr Lien. Besides that, you cant unilaterally get rid of a lien simply by signing a piece of paper. Thus the reason they don't do them. Jr's wont sign off on a Deed In Lieu back to the 1st. They would rather wait it out and force the 1st to foreclose their position. These 2nd's are idiots. Why not just have the borrower sign a promissory note and then settle THAT for the additional cash that they would have received outside closing. Clean, legal, ethical, DONE.

Vote early and often : (January 19, 2010 7:17am)

GODLIKE: Agreed, VOTE SCOTT BROWN!

Texas gal: (January 19, 2010 7:13am)

I am not getting Frank either

CB DUDE: (January 19, 2010 7:09am)

Are the promissary notes from the buyer to the 2nd fraudulent?

CB DUDE: (January 19, 2010 7:09am)

Are the promissary notes from the buyer to the 2nd fraudulent?

NoFrank?: (January 19, 2010 7:06am)

Not getting Frank in the Sales Training. Anyone else having this problem?

CB Dude: (January 19, 2010 7:04am)

I have heard of 2nd lein holders requiring a Promissary note from the buyer at closing, is this what your video is talking about?

GODLIKE: (January 19, 2010 7:04am)

Forgot to add VOTE SCOTT BROWN!

GODLIKE: (January 19, 2010 7:03am)

FRAUD the overriding buzz word? NO, the same small percentage that committed fraud in the old days (last month) will still be doing it tomorrow. What I remember is the regulators changing guidelines and we had to follow them even tho they made no sense. The lenders did nothing wrong, the regulators did the deed.

Manny Charles: (January 19, 2010 7:03am)

Just want to give a heads up that some short sales flips are okay & some are not. If you letting the banks know in ADVANCE that you are purchasing this property in order to make a PROFIT meaning flipping(being the middleman) it is perfectly acceptable to Transactions that Freddie Mac Considers to be Property Flips When I was an LO I was told that was illegal. The question is that some lenders have their own requirements, which can cost you a deal if your lender has that restriction in this market. The term property flip refers to a transaction in which a property is purchased and quickly resold for a significant profit. This has given us the flexibility to move our short sales closing from 35% to 95% success rate by allowing investors to be the middleman and start the process on day one. Also, the realtors commission is protected as we build it in the investors profit. Plus we do all the work. If you having trouble safe guarding your commission email me at mannycharles@hotmail

TheBigEasy : (January 19, 2010 7:00am)

Ezradams, I agree. Let's keep politics out of the mortgage business. Even if you don't live in MA, please vote for Scott Brown.

The Mortgage guy NC : (January 19, 2010 6:58am)

We did a short sale for a realtor who was trying to close his sale he wasnt the listing agent.It was very frustrating to deal with the 2nd. lein holder and the seller didnt want to or have the any extra money to pay the realtors had to give up a great portion of the commisions and it still had to close twice to be finalized we had the funds wired for the new buyers but had to wait another 35 dayd=s to close finally.

Vote Brown: (January 19, 2010 6:57am)

Better chance for a Brown landslide victory than a squeek it out Coakley win

Joe: (January 19, 2010 6:54am)

Brian and Frank - I am surprised you didn't find it important enough to mention the letter that 18 Senators wrote to Ben Bernanke, encouraging him to pass the amendment to Reg Z which would make YSP illegal. NAMB already sent a letter to all of its (remaining) members addressing it. A copy of the letter is available here https://www.namb.org/images/namb/GovernmentAffairs/Senate%20Letter%20to%20Fed-YSP%2012242009.pdf

Common Sense: (January 19, 2010 6:39am)

Ezradams--I agree. Let's keep politics out of the mortgage business. If you live in MA, please vote for Scott Brown.

Dirk: (January 19, 2010 6:33am)

REALTORS made EASY MONEY???!!! Everyone made easy money because the financial market wanted CDO's everyone benefited, banks made BILLIONS in profits. Don't you remember, the whole country was high on the hog. Realtors made a lot of money but many are overextended because of the change in the market just as lenders. Lenders made their % off those higher numbers just like Realtors did.

Ezradams: (January 19, 2010 6:29am)

Let's keep the politics out of this space please! 2nd lien holders knew what they were getting into when the original deal was made. They often lent more than the property's value....they should get nothing back.

OCMoneyGuy: (January 19, 2010 6:28am)

There's a RE firm/"Team" in Southern California who claims to be "First" in short sales that offers 2nd trust deed lien holders cash outside of escrow in the form of a personal check from the buyer. But this is not everything under the covers. Because they want to double end the transaction, these OC agents submit a straw buyer initially to the bank, put the home as "pending" on the MLS, continue to market it to find their own buyer, then cancel the straw buyer transaction with the bank and slip in their own buyer to complete the double end. Unethical, illegal and the DRE is hoodwinked. Why isn't anyone going after Real Estate Agents for all that has happened and continues to happen? Because their political power is too great! TBWS -we need your help to uncover this fraud.

Dirk: (January 19, 2010 6:25am)

Jimm, Are you kidding? Don't you think if someone doesn't want something to appear in the transaction(HUD-1) they are hiding it.They absolutely deserve their money back, but who made the loan in the first place. but the agents didn't force the guy to loan the money 3 years ago. The " Share the misery" mentality only goes so far. I have seen commissions cut to 1.75% for all the work involved in a short sale. But that was done IN escrow and shown on the settlement statement. Backdoor deals are what leads to trouble down the road, who knows what is in Pandora's box if that practice was to be sanctioned. What if the agent was to work out a deal with the 1st to accept a Deed in Lieu, with the end buyer already in place. There is less if anything illegal about that, would only take 30-60 days, the 1st would save thousands and the 2nd is still out. Bottom line: Make a bad loan, be glad to get scraps, Don't Steal.

Rich: (January 19, 2010 6:17am)

MA Senate Race today. How many people know that Scott Brown is a Conveyancing Attorney?? He knows about small business and how Obamanomics Reid/Pelosi are killing small business. If you live in MA, please vote for Scott Brown.

Manny Charles: (January 19, 2010 6:11am)

correction the sellers to contribute not the buyers. (see previous post)

Manny Charles: (January 19, 2010 6:07am)

WOW, I hope I am not going to be in trouble.(LOL) I process short sales for a living (dead deals that realtors and LO don't want) and most of short sales the lender have asked us to have the buyers and sometimes the realtors to help out. Does anyone know if that would effect me as I process short sales in all 50 states on the behalf of our clients? Please give me some feedback.

Ted: (January 19, 2010 6:05am)

The banks just want some of the easy money back the realtor's made the past 5-10!

Zeus: (January 19, 2010 6:02am)

It called RECAPITALIZING THE BANKS AT OUR EXPENSE! BIG MONEY WINS...OR AT LEAST WILL TRY AND WIN BY RECOUPING THEIR LOSSES. This is far from over...1 in 7 houses are in foreclosure, 90% of the houses for sale in SoCal are upside to the tune of $200-300k...that money will be made up somewhere. One of my clients was quoted 5.375 at no points and $2700 in costs to refi their existing loan with CITI, I could do the same loan for 4.875%....think the banks aren't making profits. They had to kill the broker because that is competition...less competition leaves a bigger pie and with no disclosure of back end profits, the rape and pillage is on.

Scottsdale Lender: (January 19, 2010 5:51am)

NOOOOOO!!!! banks should not gouge realtors, buyers or sellers OUTSIDE escrow. Early during this crisis I often sided with banks. They are making record profits and have put brokers out of business with the Government's help. I now feel Big Banks are the enemy and need to be fought in every way possible.

jimm: (January 19, 2010 5:09am)

The 2nd lein holder should be allowed to demand outside of closing they are owed the money they could just say no to the amount they are offered and the deal wont close why should they let their investment go. if they get nothing why should any one else, sorry guys this is just how I feel

loangigit: (January 19, 2010 3:26am)

As a matter of fact, wells 2nd just asked to have my borrower call them so that they could go over the terms and ramifications of a short sale. This is the first time a 2nd asked to have a consult with my sellers. Upon my seller calling, she VERBALLY informed him that she needed another 5600 to close the deal and it needed to come out of his realtors commission! Then he had to call me and tell me what she told him he needed to do, have me pay the 5600 on a 200K deal? Um... 2.5% reduced commission already??? yep. I did loans and worked for free so I quit that... now I do real estate and THEY WANT ME TO WORK FOR FREE TOO!!

Ali J. : (January 19, 2010 2:18am)

I had a recent short sale transaction with the 1st lien holder being Wells Fargo/ ASC (who did an amazing job at approving a make sense short sale in a quick amount of time) & I had the 2nd lien holder as Specialized Loan Servicing (SLS). My client had filed for bankruptcy several months before the short sale, the bankruptcy was discharged and the 2nd lien was included in the chapter 7 bankruptcy, the credit report reflected that the debt had been charged off, and unsurprisingly SLS was STILL demanding a ridiculous amount of money to settle and approve the short sale. SLS did not care if the deal was short funds they demanded money outside of escrow. I tried to negotiate with them, but they would not budge, they even added an extension fee for $1,000.00 (the buyers needed 10 extra days to close because of the holidays). 2nd lien holders have been trying to gouge realtors/brokers for extra money outside of escrow for a long time now and it seriously needs to stop.