WHAT IS UP WITH SUNTRUST SHORT-SALE APPROVAL LETTERS????
I had a question if anyone out there in the short sale world feels inclined to help. I am a home owner in the process of negotiating a short sale with Chase (1st) and Suntrust (2nd). Chase and Suntrust both sent me "approval letters" that had provisions requiring I still pay after the short sale closed. I negotiated with Chase to forgive the delinquency but Suntrust won't budge. Given that, I pulled out the letter and took a better look. It is terribly ambiguous about how they are going to collect on the remaining balance. The letter says Suntrust "will not release [my] obligation . . . unless [I] make satisfactory arrangements with SunTrust to satisfy all or part of" the loan. It then goes on to state Suntrust "retains all the rights and remedies in the original Loan Agreement and all of the original terms of [my] loan remain in full force and effect." Last, it says "in the event [I] do not make suitable arrangements with the bank . . . Suntrust . . . will resume collection efforts on this account." But if I do "make suitable" arrangements they will "suspend collection."
My problem is that, in Florida, promissory note judgments go away after 5 years, but delinquency judgments stay for up t 20. Sooooo, which one would this be???? I can handle 5, 20 I'm not so sure about it. And, how do they plan to just up and modify an equity line...i mean all the major terms change when you take the home out of the equation, right? What document would they be filing to seek collection? The original loan document would have almost no bearing on the new promise to pay? Don't we have to sign any promissory note that would be held against us? I'm just really confused by all this and can't seem to find any answers....any help is greatly appreciated.
Replies to This Discussion
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Permalink Reply by Bryant Tutas on
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Hi Sara. You should seek legal advice on this. I will however give you my opinion based on experience. Suntrust and Chase are basically just agreeing to release the lein so you can sale the property. The original promissory notes you signed when you took out the loans are still place. It sounds like you were able to get Chase to remove this though.
Suntrust may contact you after closing to make payment arrangements. Or they may just let it go. No way to really tell what will happen in the future. One solution is to offer them something now. Offer a small cash contribution if they will waive the deficiency in the future. You might could do this for as low as 5% of whats owed. My sellers have had success with this with Suntrust.
It's the original promissory note they use to collect on in the future. This is not attached to the real estate and never was. It's your personal promise to pay.
The problem you are having with Suntrust is due to it being an equity line. Was this taken out after you owned the property? If so they look at is as if you already spent the money on personal items so why should they release you. It's like a credit card.
Here are some article written by a Florida attorney that you will find helpful. He addresses deficiencies.
I hope this helps some.
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Permalink Reply by Steve Early on
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Our experience has been the same as Bryant's. After you finish your short sale with the Loss Mitigation department, your file will move to Recovery. The people in Recovery may contact you they may not. We have had people be asked for big bucks to close the short sale up front OR deal with Recovery after the short sale. Sometimes you can actually work out a better deal for yourself after you close - no guarantees but some have found that the lender seems to want to come up with something that will work for them and the seller.
Most people don't like this idea - the fear of the unknown, and I can certainly understand that. They want it all spelled out before they sign the short sale paperwork. Legal advice is a great first step.
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