Replies to This Discussion

Permalink Reply by sherry on August 11, 2010 at 1:50pm

Timo; I do know for a fact they do come after you. My first approval letter had the same wording they reserve the right to pursue the deficiency and my seller wanted no part of that. Chase was losing about $72,000. We negotiated and at first they wanted 10% of the loss but then later settled to come to closing with $3200 no promissory note and this wording was removed and instead it stated the debt has been settled in full and no further actions will be taken.

2 Days after I closed, my seller called to say he's glad we negotiated because collections was already calling him and he received a letter about paying or making arrangements to pay the deficiency. My seller called the collections dept and they stated they dont have that information that shows it was forgiven. I offered to fax the approval letter but they said to give it 7-10 days for it to work through the system.

This was just July 28th 2010 so do yourself and your seller favor and settle up front because they do come after you.

Keep us posted. Thanks.

Send me your email if you want me to send you the before and after approval letter

Permalink Reply by Phil Hanner on August 12, 2010 at 3:08am

As Sherry said - get this settled up front. There is no reason to do a short sale if they are not going to accept a "short" payoff. Advise them your seller has hired an attorney and the attorney has advised him not to sign such a document. The mortgage needs to be satisfied completely or it is not a short sale.

Permalink Reply by Kim Carlson on August 12, 2010 at 6:11am

I just received approval from Chase and it doesn't contain ANY verbiage about a deficiency judgement. I called the negotiator to ask if they could put in that "the deficiency judgement is waived" and he said that their attorneys would not do it, however, the negotiator has been a hard case all along. Initially, my sellers agreed to paying back $10,000 over 10 years. But when we received the approval letter, that was not in there. IF THE $10,000 PAYBACK WAS IN THE APPROVAL LETTER, AND MY CLIENT AGREED TO PAY IT, THEN CAN CHASE COLLECT THAT MONEY ANDGO AFTER A DEFICIENCY JUDGEMENT???
Thanks!

Permalink Reply by Phil Hanner on August 12, 2010 at 7:14am

If they approved a short sale, how could there be a judgement? The foreclosure lawsuit has stopped so there will be no judgement of any kind.

Kim Carlson said:

I just received approval from Chase and it doesn't contain ANY verbiage about a deficiency judgement. I called the negotiator to ask if they could put in that "the deficiency judgement is waived" and he said that their attorneys would not do it, however, the negotiator has been a hard case all along. Initially, my sellers agreed to paying back $10,000 over 10 years. But when we received the approval letter, that was not in there. IF THE $10,000 PAYBACK WAS IN THE APPROVAL LETTER, AND MY CLIENT AGREED TO PAY IT, THEN CAN CHASE COLLECT THAT MONEY ANDGO AFTER A DEFICIENCY JUDGEMENT???
Thanks!