Replies to This Discussion

Permalink Reply by Bryant Tutas on April 19, 2011 at 7:36am

All files are different. It will depend on the sellers circumstances and the type of short sale is being done. For example HAFA has a waiver of deficiency. An investment property may not unless the seller is able to participate in the loss. But one thing is for sure...if they get foreclosed on there will be a deficiency and a judgment if your State allows that.

• ▶ Reply

Permalink Reply by Alyce Nelson on April 20, 2011 at 3:53am

Ouch!  Chase is the worst in my experience for waiving a deficiency, unless it is a HAFA.  I concur with Bryant's post, each file is different, and lot depends on the underlying investor and whether or not there is MI.  One thing I can share with you about Chase is that YOU need to be the one to initiate the deficiency discussion.  It has been my experience they tend to withhold information about the deficiency and then surprise you with the approval letter.  They will have the discussion with you if you initiate it; but, in my experience, they have never initiated it.  Be sure to casually ask early in the process if there is MI and who the MI company is on the loan.  If your negotiations to waive the deficiency fail, push to talk directly to the MI company.  If they refuse, go around them if you have the name.  I've gotten deficiencies waived talking directly with the MI company.  Please note: In my opinion, a true financial hardship is key to getting a deficiency waived.  If it is a strategic default, it may not be such a good idea to pursue.  There needs to be a true inability to pay on the part of the Sellers along with Seller insolvency. Good Luck.   

• ▶ Reply