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Permalink Reply by Jim Mitchell on May 27, 2011 at 12:26pm

Hmmm, doesn't sound good to me Sarah.  Is the seller an investor OR an 'owner-occupant'?  That sometimes makes a difference on the type of approval that the banks will issue.

I personally would want the verbiage to read something like..."we waive the future right to pursue a deficiency judgement against the borrower..." or something to that affect.  You can ask the negotiator if their letters are 'state specific', meaning they know in which states they can pursue a deficiency, therefore they leave their letter open for interpretation.  IF your seller is an 'investor', I would also ask the negotiator if they treat those short-sales differently than if the seller is living in the home.  That might lead to a different type of approval letter as well, one in which they want to reserve the right to pursue the owner at some point in the future.

I was the listing agent and I just closed a CHASE short-sale last month for an 'owner-occupied' seller, and the letter they sent me contained this exact verbiage: "The amount paid to CHASE is for the release of CHASE's security interest(s), and we will waive the remaining deficiency balance on the account."

 

Good luck, and I hope that helps!

 

Jim Mitchell

Century 21 All Star, REALTORS

Mesa AZ.

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Permalink Reply by Janice MacMillan on May 27, 2011 at 3:01pm

I just closed one with Chase on 5/26, and the language read...

"JPMorgan Chase Bank, N.A., successor by merger with Bank One, NA, agree to release it's security interests in the above collateral AND forgive any dificiency balances upon recipt of $--------- in certified US funds.

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