An attorney may differ, but remember, the barber is gonna tell you that you need a haircut too.

If the loan is more than the house is worth and lender doesn't want to take a haircut, you don't have anything to work with.

or "How do you like my new haircut?"

But one day I was with a friend getting his hair cut across the street.

They are willing to take a 50% haircut on that balance when the underlying asset is worth $840,000 (rock bottom price)?

Hair can be considered a bio hazard in some areas.A bad haircut will not be on you but they need to carry a liability policy for the traffic in the shop.They will also have unique plumbing requirements, check with P&Z or Building Regs in your area.

or would he 2nd mortgage holder require the 1st to take a haircut as well?

I still think bribing them with a small haircut on the price is worth it if you know they will close with your lender.

Nathan Gesner Thanks for sharing, and nice hair cut.

In GA we have many failed banks but you do not in Texas.I just checked and their were only 8 properties showing for Texas.You would do better to call local banks directly in your state for defaulted properties on their books.Get a signed NDNC from your buyer to protect yourself legally.Many of the nice properties the banks would rather do a workout with the owners than take a big haircut today.So I get the calls everyday too from groups chasing a pipe dream for very little inventory.