Typically, the bank in second position tells the first bank they want some compensation in order to approve the short sale. Sometimes the first bank agrees, sometimes they do not, other times they try and squeeze either the buyer or the seller for what ever they can in an attempt to mitigate their circumstance (the second bank)...
Sunriver Short Sales – A Brief Need to Know
What is a Short Sale? For a short sale to occur a seller, with the Banks approval, will list and sell their home on the real estate market at an amount less than what the seller owes on the home loan. Learn how Short Sales affect the Sunriver Housing Market...