I've got news for ya. You already did. When you purchased the property. You signed two documents. The mortgage. That created the lien and gave the lender the right to foreclose on your property (their collateral). And, you signed a promissory note. That was/is your personal promise to pay back the money you borrowed.
The Short Sale releases the lien (mortgage). It may or may not release you from the note. If the Lender is offering to swap out your $200,000 note, that you already signed, for a $10,000 at ZERO interest over 10 years then......why not sign and be done with it?
Think about it before you answer. Consult with an attorney. Then make the decision that works for you. Just don't say "I ain't signing no frickin' note!!!" without thinking it through. Make sense?
Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.
Want to find out more? www.CentralFloridaShortSales.com
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Tutas Towne Realty has already successfully negotiated Short Sales with the following Lenders and Investors.
Chase Short Sale,Sun Trust Short Sale, GMAC Short Sale, Wells Fargo Short Sale,Bank of America Short Sale,USA Bank Short Sale,PNC Bank Short Sale,Citi Short Sale,HomeEq Short Sale,Fifth Third Bank Short Sale,ING Direct Short Sale,GreenTree Short Sale,Capital One Short Sale,ASC Short Sale,First Horizon Short Sale,E-Trade Short Sale,Transland Financial Short Sale,US Bank Short Sale,IBM LBPS Short Sale,
Nationstar Short Sale,BAC Florida Short Sale,Real Time Solutions Short Sale,Fannie Mae Short Sale
FHA Short Sale,Selene Finance Short Sale,DTA Solutions LLC Short sale,Flagstar Short Sale,IndyMac Short Sale
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Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales, Orlando Florida Short Sales, Celebration Florida Short Sales, Winderemere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.
reserved for TLW
BB, I am putting this in my listing packet....
Just kidding... sorta!
I am still laughing like a fool though.
Hello BB, it's a bit different in CA with our non-recourse loans, but it's still #1 on the list to tell the sellers to consult with an attorney prior to proceeding!
Bryant - As I said before the Proxy Error, BRAVO. I don't remember the rest of my brilliant comment.
Bryant, paying the piper may still be required...after all you did get to enjoy the music while you were there.
It sounds like a good deal to me. Save your credit from a foreclosure and pay 1/4 of what you owe. The banks are taking quite a hit.
Hey Wendy, Proxy killed the internet star! That happened to me twice last week. Don't you hate that? LOL
Even in States with Anti-deficiency Statues those second liens are going to present problems in the future. I am just waiting to see how many Real Estate Agents and Brokers get sued when these banks wait a year or two for the borrower to get back on their feet and then turn their deficiencies over to collection. I am still very wary of doing Short Sales unless there is only one loan and it was a purchase money loan. These seconds are problematic and I just don't want to mess around with them. I worked too hard to get my brokers license to lose it over someone else's bad decisions.
BB,
The comment above that it's different here is CA because it's a non-recourse state is true, but only to an extent. It depends on the type of loan that's been made whether or not it's recourse in our state.
As for those loan that are not, it's my understanding the "security" for the loan is no longer in place, yet the liability remains and a lender can dog you for 4 more years after the fact.
(just read Sandra's comment above, I agree)
LOL. Great argument for signing the note. Sometimes a 10k promissory note is way better than a 130k debt, huh?
So simple, and yet profound Bryant!
Hi Bryant... I have explained this to people seemingly thousands of times over the past 6 years of being a short sale specialist. Thank you for putting it out there so clearly for everyone!
Bryant,
I came from Steve's reblog.
Somehow it takes time for people wo weigh the options, and really see what it means. Choosing the lesser of the evils is smart in itself
And here it is often a lot less of an evil
LOL. It's amazing how much MIS-information is out there. And even more unbelievable is how many consumers would rather gossip with, and believe their neighbors, friends and family, than listen to the advice of professionals.
Bryant, the most important points here, is to consult legal advice. There are many remedies for this, but Realtors aren't the ones to give legal advice.
Hey Bryant! So many people get hung up on what their recently divorced neighbor did/did not have to do when they short sold their home. I tell people all the time that each lender is very different and what will works for one individual...may not work for another!
Seems like signing the new promissory note might be a smart decision, assuming that the rest of the debt is being forgiven with the short sale. At least it prevents them coming back later for a deficiency judgment. Florida is a debtor friendly state.
I used to say "Remember the OJ Simpson rule." They couldn't get his homestead or his pension even with a multi-million dollar judgment against him. But good old OJ just couldn't stay out of trouble.
I think everyone is going to be surprised when 5 years down the road the collection companies start calling!
Good to know!
Bryant, I just love to read your stuff, man!
BB:
I enjoyed this post, but I am also of the mind that the sellers should fight to avoid having to pay on the old note, either by hiring an attorney or refusing to do the short sale unless the bank gives in. In my experience, they usually do give in. Sometimes it's at the last minute, and sometimes I go through a lot of Tums. But still ...
BB:
I enjoyed this post, but I am also of the mind that the sellers should fight to avoid having to pay on the old note, either by hiring an attorney or refusing to do the short sale unless the bank gives in. In my experience, they usually do give in. Sometimes it's at the last minute, and sometimes I go through a lot of Tums. But still ...
Seems like the willingness to sign that new, lower note ought to vary according to the seller's actual ability to pay.....'cause the expectation/determination of the short-sale-approving lender likely will.
Bryant - I ALWAYS love your posts! A little humor goes a long way to help them swallow the pill.....
Wach situation is different. In some cases it may not be wise for the sellers. You have to read the acceptance letter very carefully for what it says and doens't say.
But, you are smart I know that you do that. Besides I need my 25 points this AM.
BB, I too always enjoy your posts and this is a very good one. I think any seller who is thinking about a short sale should get a lawyer before he or she does anything else. Short sale by it's very nature indicates that the seller is short on money, but I think advice of a lawyer is paramount. Paying a lawyer to read everything before the seller signs through the process can prevent a lot of heartache down the road.
BB - This post is as concise as it gets. If you think you may need legal advice...you need legal advise. otherwise... caveat emptor. Great post!
Hii BB, So true ! People don't remember that they signed those docs , or feel one negates the other ! Well said.
All sellers in a short sale situation should seek legal advice. Problem is, do they have the money to pay him?
Hun...
I ain't signing no frickin' note is a knee jerk reaction. Once their knees stop jerking, they get it :)
TLW...ROAR!
TLW is right, talk stupid first, then come back around to reality. 10K sounds pretty respectible for 200K in debt. Thou shalt not talk stupidly and abruptly ...... amen.
I think banks hit them with a high number to they will succumb to the actual number with less of a fight!
Great ammo Bryant! When all else fails, use logic! Thanks for your thoughts today.
I've actually have had sellers tell me, since everybody is doing it, his deal won't matter. They said it would take banks forever to come after everybody.