In all of the short sales that we have ever done, we have never had a first and a second loan that we both in the recovery and both needed to be handled via short sale. For your information, a recovery department is a department in the bank where they have charged off the loan and give that loan to their recovery department or sell it to another party. The entire purpose the the recovery department is to collect money. Based on our experience, Chase, GMAC, and Citi have been the three lenders that charge loans off most frequently.
The last BPO on this specific property was done 9 months ago. They did a new BPO and it came back in support of our offer. So, they agreed to the short sale. However, the second lender loan was allegedly owned by ETrade. The first recovery department doesn't want to give much to the second. The end result was that the first gave $3,000 and the homeowner came to closing with $2,000 for the second to be satisfied.
Many of us get to a point where we think that we have seen it all and know what is going on. However, we've closed hundreds of short sales and now we are seeing something new for the first time. Recovery departments are much more concerned with collections than they are with anything else.
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