Investor will not waive deficiency rights in a short sale
Hi All,
Has anyone come across a short sale wherein the investor will not waive deficiency rights if the borrower does not apply for the HAFA program. According to my negotiator, if the short sale gets approved, and the borrower did not go thru the HAFA guidelines/program, the investor will go after the borrower for the deficiency. The borrower has relocated to Asia due to a job relocation, the unit has tenants with a lease until August 2013, the buyer is an investor, and wants the unit as rented. Furthermore, the commission will be cut to 5% instead of 6%. Thank you for any input you may be able to give.
Replies to This Discussion
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Permalink Reply by Jerry A Cook on
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Some real good questions!
If the owner, who is in Asia, isn't coming back to the state where the property is located.... Sucks to be the investor who thinks he can collect! It is a hallow threat.
The selling banks are entitled to net as much as possible on each short sale, and if it means you get paid less, then negotiate with the selling agent to have buyer pay them 1% as a buyers agent commission, then the selling agent can take 2% from file, leaving your office with 3%.
Selling agent and buyers terms are NOT subject to seller's bank preview or overview!
In todays sellers market, most buyers will pay the additional selling agent fee, to assure that they get the deal!
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