short sale closing--what should be in paperwork?

[tdskkenn]

Hi there. Our property is located in AZ. Both mortgages are with Wells Fargo (WF) and both are purchase money. If we were to foreclose, there would be no deficiency judgement. (An AZ atty confirmed this for us).

The good news is we are almost done closing a short sale. WF1 has already issued its acceptance letter. The problem is with WF2. WF1 will pay WF2 $3000 at closing. It's on the HUD. WF2 wants an additional 4k from us so they can redeem 10% of the balance (balance is 70,000). We are fine with this EXCEPT they want us to wire them the money before the closing and before they will give us the acceptance letter. WF2 says that if the additional 4k is put on the HUD, then WF1 will make a stink about it because they will want the $$. My realtor asked WF1 negotiator about this and she agreed. WF2 will not accpet a prommisorry note from us for the 4k. So I have a few questions based on these facts:

1. Should we wire the money and "hope" that WF2 approves the SS?
2. What language should we ensure is in the closing docs protecting us from deficiency and tax liablity? (This isn't really relevant to the wire issue...)

Thanks for any advice you can give. Our realtor is anxious to get this closed, and WF has not been easy to deal with and we don't want to lose our buyers.

Thanks,
S. Parks