I have a first mortgage with Wells Fargo. I have a buyer and am trying to do a short sale. They agreed to the short sale if I pay them 3 K in a note . I agreed and they will pay the 2nd 3K to release the lien.
The 2nd was recently sold by M & I to BMO Harris. M & I charged off the loan. BMO will not negotiate. My balance is 50K with BMO, they will not accept a promissary note or installment loan. They want 70% cash to release the lien and deficiency. What can I do? I offered 6K up front (3K form WF and 3K from me) to release the lien and I indicated I could be 20 K via a loan to them. They indicate they will not rewrite a note or loan on a charged off account. Are they playing hardball. The realtor has never seen a 2nd mortgage do this.
I do not want to file bankruptcy. I will not qualify for Ch 7 due to my income and ch 13 doesn't sound reasonable as the atty I met with to discuss this says they may require me to stop putting money in my 401 K and decrease my student loan payments. I am 54 years old and am trying to get my student loan paid off by age 65.