Short Sale Steps
Question: I am default in payments for almost a yr. due to financial hardship I was not able to pay my mortgage. Now my house is on short sale approved by lender or investor. but before the short sale they want me to pay the promissory note of 12k. i told them i will not sign the contract, then they lowered it to 5k, still i told them that will not gonna happen. Is it illegal to give me a prom note before the short sale? they want that note to be paid in cash by escrow or the 12k will be pay for 60 months. I think this is very irrelevant to my situation. I have two daughters who will go to college, and they said that they don’t care if my children will not be sent to college. pls. help me
Mercie
Answer: Yes, the lender can legally go after the borrower for a deficiency judgment, but keep in mind that this has to be a mutually agreed upon document, and if it is something you simply cannot afford, than why agree on it?
Basically if it’s not affordable then why on earth would you request a short sale to begin with and furthermore, if they look carefully at the financial information it should clearly show that it’s not financially feasible.
Fight and let them know that its not feasible financially and if it goes through the forecloses process it will cost the lender twice a much with foreclosing fees and tax fees with a foreclosure process, not to mention the time the bank would have to maintain the asset.
I used to think short sales were a pain in the bottom and refused to work them. As prices continued to drop out here, I had no choice but the learn to work them better. Fortunately, the lenders and servicers are finally starting to become easier to work with lately and I can make a living once again! Dorothy
Interesting post! We are agents oursleves who do Colorado Springs short sales, and the process has certainly gotten easier in the last year or two. It is good that lenders are finially able to process these better.