Replies to This Discussion

Permalink Reply by Michael Hayley on April 10, 2012 at 4:12am

Keep us updated. I'll be cheering you on and developing strategies for when they try to get into my pocket. 

Permalink Reply by Laurie Lock on April 18, 2012 at 10:52am

Hi Samuel~

I would love to get an update from you (and anyone else!) on this- could you email me and we can 'Chat" more about it?  I just got this same joyful news from my negotiator. I am willing to fight, but would rather go to battle with more ammunition... :)

My email is: [email protected]

Thank you in advance!

Permalink Reply by Samuel Hilbert on April 18, 2012 at 11:22am

Hi Laurie -

I'm putting this here so everyone can see what happened though feel free to email me if you have more questions. I consistently got pushback from them about the deficiency. The ultimately told me that they would submit it with no contribution required and they did and it came back "requiring a contribution" though they couldn't put that in writing. I spoke the supervisor and he said that he could try again but it would likely be the same answer.

After discussing this with my seller we decided to offer a seller contribution of just $500 (while keeping the commission the entire 6%). I just received my approval letter on Monday for this with the deficiency removed.

Interestingly...it was two approval letters from this lienholder. The first approval letter was for just the release of the lien for the 6% that they were getting from the first. The second approval letter said that if they receive the $500 seller contribution at closing they will also release the remaining deficiency balance. It made me wonder if they weren't bluffing...though I do still wonder. Thankfully my seller was willing to pay $500 to ensure that they wouldn't have a deficiency.

Good luck on yours...hopefully you'll have similar success!

Permalink Reply by Laurie Lock on April 19, 2012 at 9:26am

Hi Samual~

Thank you for this! What state are you in?  In CA we cannot have sellers pay anything.  So I suppose we could have buyer pay a small amount for the deficiency release.

Permalink Reply by Samuel Hilbert on April 19, 2012 at 9:33am

I'm in Washington. The problem with the buyer paying money is that the first may want that money. The other option the kept giving me was commission and they told me commission would likely lead to the same outcome. He kept saying we should give at least .5% if we did commission though they wanted a full 1%. This was so much more than our seller contribution of $500 that it was an easy decision to try that one first and I'm very glad that I did. It is possible a commission contribution of $500 would have been accepted too...who knows. It's also possible I could have pushed enough and they would have eventually given in but my seller didn't want to waste anymore time trying since we'd already pushed back enough. Good luck!

Permalink Reply by Laura Marshall on April 19, 2012 at 11:46am

In California, there is no deficiency on any residential 1-4 unit approved short sale as of July 2011. See attached: SB 458...which amends SB 931. This applies to ALL lienholders, where the prior SB 931 only applied to first lienholders :). If you go online, you can read the entire bill - this is just an outline.

Attachments:

• SB 458 California Senate Bill 458 CA SB 458 Forgives All Debt After a Short.pdf, 155 KB

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