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peace · Joined: 17 Jul 2009 Posts: 8 4.40 Dollars($)

I submitted a short sale offer to the bank on property that I building as a primary residence.

They asked to put a $75,000 second lien on my primary residence to agree to short sale on the other property even though my primary residence is underwater.

Can they do this?

savior70 · Posted: Sat Jul 18, 2009 4:33 am Post subject:

Hi peace,

It seems that your bank is trying to put the lien on your primary residence in order to recover the deficiency from the short sale. They expect to collect the deficiency through the lien, when you sell off your primary residence. They can do this. But what they cannot do is, they cannot foreclose on the primary residence to collect the deficiency.

gmakerley · Posted: Sat Jul 18, 2009 5:09 am Post subject:

"they asked" - that's how you described this situation. then you asked "can they do this?"

based on their making a request of you, don't you think it's up to you whether they can place a lien on your primary residence? of course they can do this...anyone can request what they wish - what you decide will be key.

peace · Joined: 17 Jul 2009 Posts: 8 4.40 Dollars($)

George, they actual request to put the lien on the primary residence to make up their expected short fall.

I have some land that is part of a LLC which I own out outright. Wonder if they would care where they place the lien.

gmakerley · Posted: Mon Jul 20, 2009 7:12 am Post subject:

peace, i think you need to be in control of the situation. give them something if you wish, but use your own judgment to decide which is the best move. they may be stubborn, of course.

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Can the bank ask for a lien on a primary residence for a short sale offer?