"Reserve the right to pursue deficiency"
I have a Fifth Third short sale that will be approved by Tuesday. I went and had a sit down meeting with the negotiator yesterday afternoon after getting no responses to my emails or phone calls. He told me that there approval letter states "they reserve the right to pursue the deficiency judgement". I was wondering if anyone has copies of the Fifth Third approval letters so I can put together a game plan and an offer from the sellers in case we get the bogus approval letter they have mentioned. The property has a loan amount of $850K they are accepting a purchase price of $525K. The property BPO came in at $545K and we negotiated the price down. The sellers have no income and originally were the co-borrowers, the borrowers disappeared back to Germany and left my sellers with a very upside down property, the original price was over 1.2 mil. If anyone has approval letters for me to review I would greatly appreciate it.
Thanks! Kynse
Replies to This Discussion
-
Permalink Reply by sherry on
-
Do you still need a copy of the approval letter? If so, I can email it to you. Our seller actually walked because he has no money and did not like the wording you mentioned. Then to remove the wording they wanted him to sign a prmissory note for 30K. Now 5 months after the property is still listed with no offers, more fees and a foreclosure sale date.
-
-
Permalink Reply by Kynse L. Agles CDPE on
-
Yes please [email protected] I am supposed to have my approval by Monday.
sherry said:Do you still need a copy of the approval letter? If so, I can email it to you. Our seller actually walked because he has no money and did not like the wording you mentioned. Then to remove the wording they wanted him to sign a prmissory note for 30K. Now 5 months after the property is still listed with no offers, more fees and a foreclosure sale date. -
-
-
Kynse, please write a letter to the bank and Fannie Mae if it is a Fannie Mae loan. They removed the language about deficiency. It took some emails (nasty) and phone calls, but they did it and it can be done. This was a Bank of America loan. Read my blog. Or you can email for more details ([email protected])
-
-
Permalink Reply by Bryant Tutas on
-
Just a word of caution. Removing the deficiency language from a demand letter does not mean the lender can't still go after a deficiency in the future. They would have to add specific language stating that they won't go after a deficiency. This language would also have to specifically mention the mortgage AND the note.
Of course I am NOT an attorney nor do I play one on TV. Please have your sellers seek legal advice. -
-
-
Have you heard anything on the approval, deficiency, or promissory note from Fifth Third?
-
-
-
Negotiating as we speak, they want a full deficiency balance as a promissory note $150K paid no interest over 15 years. And yes Brian I always get in writing that they will not pursue the deficiency. Just like my attorney told me to(: I will keep you posted, Fifth Third is now stating the borrower does not have a hardship, which is insane. I will keep everyone posted.
-
-
-
So I got Fifth Third to toss the $150K promissory note in exchange for $5K at closing!!! Hooray, I should have approval letter by Wed of next week!
-
-
-
This is GOOD NEWS. What negotiation tactics did you use or what did you tell them? Thanks for the update
Kynse L. Agles said:So I got Fifth Third to toss the $150K promissory note in exchange for $5K at closing!!! Hooray, I should have approval letter by Wed of next week! -
-
-
I am a very tough negotiator, so tough in fact that I have been negotiating short sales for agents all over the country that can not get them done. I went to the office where the negotiator is (local Fort Myers office very lucky to have the negotiators only 30 min from my home) and played hardball. I brought all the sellers credit card statements-maxed out, Equity line on the primary residence- maxed out and the balance in the money market account (approx $10K) and started at 1,000 cash, I knew 5th3rd only offers 5% commission and they would cut it anyway so I negotiated down my commission and we went back and forth until we settled at $5,000 cash at closing with no promissory note. That was a bit less than I was authorized to negotiate on my sellers behalf. I always get a max amount cash at closing that my sellers can bring. I have never had a seller bring more than $5,000 cash at closing. I have had banks ask for over $75K cash at closing plus promissory notes ect .I have always had them settled at $5K or less. It takes a lot of patience and persistence!
-
-
-
Kynse - I just heard from our neg. who said she is forwarding the paperwork to mgmt for review. SHe said she was going to call my seller to talk to him. She advised that 5th 3rd will not waive there rights to collect any deficieny. Do you mind emailing me a copy of your approval letter to [email protected]. I want to be able to compare it to the approval letter I received couple months ago that I forwarded to you and the one you received. ThanksKynse L. Agles said:I am a very tough negotiator, so tough in fact that I have been negotiating short sales for agents all over the country that can not get them done. I went to the office where the negotiator is (local Fort Myers office very lucky to have the negotiators only 30 min from my home) and played hardball. I brought all the sellers credit card statements-maxed out, Equity line on the primary residence- maxed out and the balance in the money market account (approx $10K) and started at 1,000 cash, I knew 5th3rd only offers 5% commission and they would cut it anyway so I negotiated down my commission and we went back and forth until we settled at $5,000 cash at closing with no promissory note. That was a bit less than I was authorized to negotiate on my sellers behalf. I always get a max amount cash at closing that my sellers can bring. I have never had a seller bring more than $5,000 cash at closing. I have had banks ask for over $75K cash at closing plus promissory notes ect .I have always had them settled at $5K or less. It takes a lot of patience and persistence!
-
-
Permalink Reply by Richard Zaretsky on
-
Broker Bryant -
We all know you are not an attorney - but you are usually (as here) correct.
Richard P. Zaretsky, Esq. -
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons