"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 

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Replies to This Discussion

Permalink Reply by Kynse L. Agles CDPE on April 27, 2010 at 2:39pm
I have an email stating they will not pursue the deficiency from the supervisor, our attorney reviewed it before closing. I work close with a real estate attorney on all of my short sales now. It is always great to have the expert legal advice I need.

Richard Zaretsky said:
Broker Bryant -

We all know you are not an attorney - but you are usually (as here) correct.

Richard P. Zaretsky, Esq.
Permalink Reply by Chicago Agent on May 10, 2010 at 3:45pm
Great Job Kynese! I wish all short sale agents have that same fire power!

Kynse 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 Chris Black on February 23, 2011 at 6:33am

Hi Kynse,

Looks like we are in the same neck of the woods.  Here is one we just posted from February.  It is silent on deficiency rights.

2011-02-01_Fifth Third Approval from Winged Foot Title, LLC

Hope this helps.

Chris

Permalink Reply by Kynse L. Agles CDPE on February 23, 2011 at 6:38am

Chris,

I have now learned how to get the deficiency language removed. I have successfully closed several 53rd deals where we negotiated the deficiency with either cash at closing or an unsecured prom note. 

Kynse Agles CDPE 

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