Replies to This Discussion

Permalink Reply by Brian Wood on March 28, 2012 at 6:50am

How much are they asking?  Will they include the deficiency waiver?  One client gladly payed 1k for it from Wells Fargo.

Permalink Reply by judith traynor on March 28, 2012 at 6:52am

You can negotiate the cash contribution or promissory note. I got them to take $500 instead of $5,000

Permalink Reply by Jim Schneider on March 28, 2012 at 6:54am

Benjamin, help us help you... do you know who the investor, and mortgage insurer (if any is). There policies can often have a big impact, expecially on requests for the sellers to "participate in the loss".

Permalink Reply by Ben Racela on March 28, 2012 at 7:39am

Instead of just saying "no" the seller should have provided a statement as to the reason(s) why they cannot bring cash at closing and pay for a promissory note.  Most lenders are asking for cash and promissory note.  Basically, they do not know what a seller will accept to get the short sale approved.  If your seller truly cannot afford either have them provide proof they cannot.

With the sale next week and the file being closed Wells Fargo will need a truly good reason to reopen the file.  I would suggest to have the seller agree to some amount to bring to closing and waive the promissory note as a term for the lender accepting the cash at closing with waiver of deficiency.  The ball is in the seller's court at this point.

 

Good Luck.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on March 28, 2012 at 9:31am

Borrower should write a letter (updated hardship letter) explaining they don't have the means to make the one-time or ongoing payments - IF they don't have the money, if they do, try to negotiate "something"  I've seen a Promissory Note for $2,500 payable over 5 years at 0% interest.  That's $41.66 a month for a waiver of deficiency and it's ends up being a new / good line of credit on their FICO !