Replies to This Discussion

Permalink Reply by Bryant Tutas on October 19, 2010 at 12:30am

Hank. Just submit the offer through Equator like any other short sale. Most of my short sales are flips that flopped. There is a field when inputting the offer where you can enter a cash contribution and/or a note if this is what he chooses to do. Just be sure to start out with room to negotiate. Or he could just wait for them to ask. They may not.

Permalink Reply by Wendy Smith on October 19, 2010 at 1:18am

I agree, just submit as any other short sale. Don't offer the prom note at this point.

Permalink Reply by Steve Early on October 19, 2010 at 11:29pm

Hank - I agree with Wendy. I wouldn't put the promissory note on the table until you hear back on the offer. Their acceptance or denial of the current offer will be based solely on the valuation calculations that the investor does. If the offer is not accepted, then you might consider the offer of a promissory note.

When a lender asks for a promissory note, I'm told it has nothing to do with the offer amount or the amount of money they are losing. They ask for a note because they believe the seller can afford to pay them back something. I'm not sure how that will influence their decision to work with the seller.