In some cases the lender may ask you to pay the difference in the form of a promissory note in order to complete the short sale.
Most often this comes into play if there is evidence that the seller has money available in the form of savings or other major assets.
In some cases the lender will simply give the third party approval with a conditional language that says in effect. ."Short Sale is approved under these conditions. . that the lender maintains the "right to reserve to pursue a deficiency" at a later date.
Most often this is a subdue attempt to maintain their rights to go after the borrower in case they have reasonable belief that they are able to pay it.
My contention to the lender in this case has always been the same back to them. .
"They have a HARDSHIP. . you acknowledging that-- when you gave the approval. . HARDSHIP means NO MONEY!!! WHY ARE YOU ASKING FOR THIS??
"Please remove the language "right to reserve to pursue a deficiency" so we can proceed. . so the seller can be assured that this is the end of it and not leave them hanging just like they have the last few months!. ."
Having experienced 160 short sales, I can assure you that short sales are like snow flakes. .no two are alike. . . even with the same bank!
You are doing a short sale to remove this deficiency and that is
ultimate reward for having to consider it. . if not. . why do it at all?
Expert in Bank of America, Wells Fargo and Chase Short Sales.
call: 240-426-5754 for MD, DC & VA
Fernando Herboso has listed over 160 short sales, trained dozens of agents "how to do short sales "and has authored the following books about short sales
Author of the eBOOK " Avoid Foreclosure Hell"
Author of the Ebook " 31 Reasons To DO A SHORT SALE"
Herboso & Associates LLC | 301-246-0001
Maryland | DC | Virginia
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