I am following up on an answer to the following question we received about short sale deficiencies. “We have a first mortgage with EMC. Just got an approval letter on a short sale. NO language in letter that says ”satisfied in full” or words to that effect.
It only says “conditions for EMC’s acceptance of this discounted payoff are X.” Will they sell the note to a collection company and then hound us for years to come?
In part one and two we detailed the types of loans where, in my opinion, you would not owe a deficiency on a short sale. There are a few types of loans that commonly ask for a promissory note. Here are the types of loans that often ask for a promissory note.
They are loans that are owned by the lender you originally got the loan from. A good example is a credit union loan, or a small community bank. Another common type are loans that were granted with Private Mortgage Insurance. In our experience, these companies are very demanding. They negotiate hard and say they will not approve a short sale without a promissory. However, that is not always the case.
Prove to them that you don’t have any assets, nor any extra monthly income. Your agent will show them that they are better off accepting the short sale. Most of the time they will waive the promissory note and accept what they can get. After all, something is better than nothing. Make sense?
If you are considering a short sale and are worried about the deficiency, then give me a call at (770) 866-2561. When you contact me, I will research the type of loan you have. Based on that research I can give you my opinion on the deficiency.
When you contact me, I will research the type of loan you have. Based on that research I can give you my opinion on the deficiency.
The above is my opinion. It is not legal or accounting advice. Please contact a competent attorney or other professional because the circumstances vary, depending upon your situation.
Thanks for reading this, Roland Lorans.
Roland is a real estate agent at Better Home and Gardens Real Estate Metro Brokers.
Phone: (770) 866-2561.
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Roland Lorans specializes in loan modification assistance and short sales in Alpharetta Georgia . Alpharetta Loan Modification Help, Alpharetta Short Sales.