Is Bremer Bank a Bully? You decide.

Okay... here's the situation. I have a client whose house we are selling. We recieved a purchase agreement and have negotiated a short sale with the first. The second, held by Bremer, is owed +/- $32,000. We are attempting to settle the second with them. The first has allowed them $3000 to be paid off (much higher than the usual payout of only $1,000!) and that was not enough. We came up with more... the client found some change under his couch cushions, his mother came up with some--- I have even pitched in a bit of commission to come up to $10,000.

The request has been denied. They want a personal loan from their former borrower so the amount they eventually get repaid is $25,500 (85%!!!). They are offering a three year note at zero interest to "help him out."

Now, let's say my client declines this request and lets the first mortgage take the home in foreclosure. Bremer claims they plan to go after him with a judgement.

So what are they trying to do? I understand no one likes losses... I wouldn't like to give up $20,000 of my money either... but is it better to get $10k now or force someone into bankruptcy with a judgemnt and get little, or perhaps, nothing?

Check out my other posts on second mortgages:
http://helpwithforeclosure.blogspot.com/2009/08/second-mortgages-getting-sticky.html
http://helpwithforeclosure.blogspot.com/2008/12/promissory-notes-and-second-mortgages.html
http://helpwithforeclosure.blogspot.com/2008/12/second-mortgages-getting-harder-to-deal.html
http://helpwithforeclosure.blogspot.com/2008/08/is-bremer-bank-bully-you-decide.html
http://helpwithforeclosure.blogspot.com/2008/06/my-second-mortgage-is-chasing-me-or.html
http://helpwithforeclosure.blogspot.com/2008/02/have-you-been-using-your-home-equity.html
http://helpwithforeclosure.blogspot.com/2008/01/what-happens-to-second-mortgage-during.html