Pre-Forclosure Problems

It turns out there are a few other offers on this home and the home has not yet been foreclosed on.  The owner has a primary and secondary lender for the mortgage.  The primary lender is demanding bank account information from the owner so they can determine if the owner is trying to get out from under the loans, or if they really are unable to make payments.  Evidently the lender is not eager to foreclose on this property.

The primary and secondary lenders are unable to come to an agreement.  Each lender refuses to take a loss on the home and the total mortgaged amount is approximately $20,000 more than the  value of the home in the current condition.  The lender has stated that interested parties each need to put up an additional $1000 which will be non-refundable.  The lenders will then pick the best offer.  It looks like the lenders are trying to get the interested parties into a bidding war to drive the offers up to try to recoup some of the losses they will have to take on the home.  We are withdrawing our offer.  Gone are the days of cheap foreclosures I guess.