Denver, CO – The Stop Foreclosure Institute has received many questions relating to the issue of short sale deficiencies, over the last year or so.The one question that remains to be constant, deals with why the lenders will not allow the borrowers to walk away without a deficiency judgment. This is a very common question and familiar situation with a short sale.
"We are in the middle of a very long negotiation with a large national lender. I had my agent put a clause into the contract stating “upon approval of short sale by sellers’ lender, lenders, or affiliates, client, or heirs will be released from any monetary shortages or deficiencies from said sale of stated property upon successful closing and transfer of title from that date and forevermore.”
Too often the lender's short sale negotiators have responded in this manner to the agent, "We will reject the file and close it out if we don’t remove this from the contract." What do you think?
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
Here is our opinion to this question. I think the negotiator is getting his ego involved. Many loan owners waive promissory notes. He is out of line (and breaching his lender’s fiduciary duty to the loan owner) if the following applies:
1. If it is the investor's policy to not pursue a deficiency.
2. If accepting this short sale will net the investor more money than a foreclosure.
Do these two things apply? You and I don't have millions of dollars to pursue a lawsuit, but we can contact the loan owner directly to let them know what is happening.
If they are going to lose money not accepting the short, then they need to know about what this lender is doing.
Now, the negotiator has the authority to demand a promissory note depending upon who the owner of the loan is. Find out who owns the loan.
Fannie Mae, Freddie Mac, FHA, and VA will let the borrower go free from all future liability. Obviously that doesn't apply if there is Mortgage Insurance.
Find out if any of those entities owns or insures the loan. Then tell the negotiator that you will be contacting them directly
Thinking about a short sale?
I can help you short sale your property and never pay the bank another penny. Send me an e-mail at denverforeclosureblog@gmail.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 303-521-0984
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification?Our Westminster loan modification guide will show you how to reduce your mortgage payment, keep your home, and get back on your feet. Request your FREE copy, below!
Thanks for reading this, Dan Hopper.
View My homes for sale at www.danhopper.com.
Dan Hopper specializes in loan modification assistance and short sales in Denver, Colorado. Denver Loan Modification Help, Denver Short Sales. Denver Realtor. Westminster, CO Loan Modification Help, Westminster, CO Short Sales, and Westminster Realtor.
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Important Notice
Dan Hopper, Remax Alliance, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
The views expressed here are Dan Hopper's personal views and do not reflect the views of Remax Alliance.
This information on Stop Foreclosure: Walking Away With No Deficiency!, is provided as a courtesy to our viewers to help them make informed decisions.
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