Last minute short sale negotiations

Completely "under water" 2nd lien holders still hold much power in allowing or disallowing a short sale. Even on deals that have been approved by both lenders weeks ago, there are last minute negotiations that occur. In one recent example this week, the 2nd, who was to receive $2,000 as a nominal walk-away fee, negotiated the day before closing to receive $17,000 from the senior lien holder. As any good negotiating book will teach, the real negotiation happens when time is not in some one's favor. Try going to legal arbitration - nothing happens for 7 hours and 55 minutes, then everyone shakes hands at 7:59 - then goes to dinner to lament and or cheer. Moral of the story - short sales are a pain - and a good deal - and a pain...