I have a short sale with one mortgage with Suntrust.  The principal balance of the debt is $386,000, and our offer is $370,000.

Suntrust will NOT waive the deficiency.  The first approval issued was with a cash contribution of $42,000.  We countered that approval offering a $5000 cash contribution.  They issued a new approval with the $5000 cash contribution and added a $37,000 promissory note. 

I have repeatedly told the negotiator that if the sellers had these funds, they would have just done this transaction as a regular sale.

Does anyone have any contact info for upper management or any insight?

Thank you!!

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Marti, are you negotiating the short sale, and have seen all the submitted documents?  There may be something in the seller's financials causing Suntrust/investor to take this stance, but maybe not.

I handled 2 similar short sales with Suntrust and if the seller can come up with more cash to bring to the closing you can most likely negotiate the promissory note away.  One of my sellers pulled from his 401k in order to accomplish that.  The other seller couldn't come to the table with any funds so they took the promissory note which was at zero interest payable over 20 years.

Is there PMI on the loan?  If so it could be the PMI company requesting the promissary note.  Also, what state is your property in?  If SunTrust will not waive the promissary note then the borrower should take the unsecured note. By paying the monthly note it helps build their credit back up as long as it is paid as agreed.  I also agree there must of been something in the borrower's financials or bank statement that might be causing the note. 

 

Carla Tyus

Santa Clarita, CA

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