Topic Title: My Short Salefeedback please

First Post:

Here are the details of my situation and where I am currently at with my short sale:

I am currently in my 4th month of delinquency. What is making my short sale more complex than typical is that my original loan was written as a 70-30 loan with 2 banks

bank 1 (Primary lien holder), I owe 172K
bank 2 (Secondary lien holder), I owe 32K

My short sale paperwork has been submitted to both, I have a potential buyer that has offered 90K. Both banks issued their own BPOs. The Primary Lien Holder came back at 114K (then immediately dropped it, without negotiating, to 100K). I am still awaiting the results of the 2nd.

So the Primary initially made the following offer:

100K to the new buyer and 10K upfront money from me (to cover closing costs)...or 25K over 15 Years. I said NO!!!! They came back and knocked down the 10K to 3K and they are standing pat there, even though I am going to continue to fight them on it.

The Secondary wants 3K from me. Their reason is "we want some money upfront to approve this short sale". I am also fighting that.

FYI, when I say fighting, what I mean is I just continue to stand my ground and say I dont have the money!!! which i truly dont, as my financials prove.

The buyer still has not accepted the 100K offer, but that is not my issue and not my biggest concern so far. My Realtor has some other perspective buyers.

Here is one of my biggest concerns:

The Secondary lien holder, is going to take 3k (from the primary lien holder) and release their lien from the property. Once this short sale goes through, the Secondary Lien holder is going to try to come after me for the balance, which as of now looks like it will be 32K - 3K = 29K. After speaking with the bank reps, here is how this will go down:

Within 10 days of the short sale completion, the remaining balance will get handed off to their collections department and they will contact me and attempt to collect the debt. At that time, I will tell them "sorry, as you can see from all the financials Ive submitted I do not have this money and there will no way for me to pay this money back now and in the near future, in one payment or multiple payments over time". My financials do prove this to be true. I was also told that at that time, my financials will be re-evaluated and a new offer will be presented, something to the affect of 10-12K. I will then play the same song and dance and cry poor (which is not an act by the way,.....i truly do not have this money). At that time, they may or may not go back and re-evaluate and reduce the offer. This is all the info Ive been able to get about this so far. Its that bridge I have to cross when I get to it after the short sale goes through. No one will give me a definitive answer until after the short sale is done. I did however hear from one bank rep that "if you don’t have the money, we cannot collect the money", i responded to that with "can they garnish wages?", they responded with "we are not going to take that time and spend the money to get 29K that you don’t have"............now I personally don’t buy that........your feedback please!!

Now to the 1099 issue. After speaking with numerous lawyers, accountants and realtors, there is no way around this. Certain states are debt forgiveness states, unfortunately for me, Florida is not one of them (I live in NY, the condo is in Florida). I will get a 1099 from both banks after the short sale is completed.

So here are the

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