Who Pays What And Who Decides?
Family member has offer on home that is mortgaged above FMV...$74k offer (very good for this home), 1st at $57 and 2nd at $26k. Contacted 2nd holder for possibility of converting to personal loan the balance at closing. 2nd holder has just advised that they will not permit realtor fee and closing costs to be paid from sale price. Result is need to have $6k at closing, which of course they do not have! Does 2nd holder have position to control this decision? What can be done? Thanks!
you wrote, "Does 2nd holder have position to control this decision?"
The second mortgagee doesn't have to accept a nickel less than they are due... Without their participation, there will be no short sale transaction. So, yes, in a way, they can dictate terms and conditions.
My suggestion would be to revisit the short sale application and proposal... and resubmit.