I was the buyer's agent on a short sale that went to settlement, yesteday, February 24th. Overall the transaction went very well. The listing agent negotiated the short sale, kept me updated weekly and the entire deal from contract to settlement took a little over three months. Not bad for a Short Sale. However, the second lender gave us three weeks from approval to settlement while the first lien holder gave us five weeks. We could have gotten it done in the three week time frame had we not been inundated with snow. As most know, when the Washington DC area gets back to back blizzards, we are shut down for a week. Well, the underwriters were also shut down and as a result we could not meet the date required by the junior lien holder. So, they wanted $300 as an additional fee. The other agent and I agreed to split that cost, hey we were of the school of thought of "git 'er done". The day before the settlement, the title company informs us that the first lien will not approve the hud sheet, tath we absolutely could not give ANY more money to the second lien holder. He is getting $3,000 and not another dime. The first lien holder was getting $182,000. After much back and forth, the first lien holder agreed that both realtors could reduce commision to give the second lien holder the $300.
I am puzzled. Why would the first lien holder care? Why on earth would it matter? What am I missing here? Someone please fill me in.