Why are junior lien holders playing hard ball?
Blog entry
Here is an interesting perspective from a fellow CDPE and a friend, Sidney Jimenez, as to why it is becoming harder to negotiate with junior lien holders (2nd loans) in a short sale. More and more, the junior lien holders are demanding a lump sum contribution or some sort of promissory note (which they presumably will sell later to a collection agency) rather than simply take what the senior lien holder (first loan) dictates. Naturally, the hardship at hand will ultimately dictate whether the seller will have the wherewithal to make such payments or live up to the promissory note, but there is a trend developing here.
