I have been working this short sale for 6 months.  BofA countered and the original cash buyer walked. I advised the negotiator that I had a new offer at the investor ask of $185k and he closed the file violating BofA's policy of submitting a backup within 5 days. File was transferred to REDC and I was shut out of Equator. I wasn't able to submit the second offer until my seller advised REDC that she was not interested in a Deed in Lieu of Foreclosure. The new offer was submitted, REDC accepted the $185k purchase price and countered asking for a $29k promissory note payable monthly over 72 months.

It's a Fannie Mae loan and it looks like I have two options. Counter the note and/or file a complaint with Fannie.  Has anyone had a similar experience?  Of course, I only have a couple of days to figure out my strategy and I am open to advice, suggestions, etc.  #help   

 

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Yep, we're a little "different" No Prom Notes, No Deficiency as a condition of short sale.

I wish we had that here Tom.

Write to your legislators and the governor - Our Governor signed it into law 2 years ago!

MI shouldn't be asking for promissory notes anymore for Fannie and Freddie deals. This doesnt preclude the investor or BOA from playing games...when dealing with these negotiators play hardball and see how far they'll take it...they will decline the file but you can reinitiate it as many times as it takes...there are plenty of buyers out there...you may want to find a cash contribution amount that BOA is willing to take in lieu of the prom note....then charge it to the buyers....

The new FNMA/FHLMC Standard Short Sale Program effective 12/01/12 can result in a Promissory Note and/or Cash contribution if the seller's FICO score is higher than 620 and/or they are less than 90 days past due.  You can find this new process of these investor's websites.

Not in CA.....  Promissory Notes or Cash Contribution as a condition of Short Sale Approval is against the law.  SB458, SB931

I had a very similar situation, but they raised the price by $6000 they had already issued an approval letter for, and now asked for a promissory note of $10,000 from the seller.  The offer was at about 90% of their value (which means it was about 20% more than market).  I asked the buyer if they wanted to raise their price and was met with a big fat NO.  I asked the seller if they had any way to come up with some cash for a payoff to the investor and was also met with a NO.  I went back and countered back at the previously approved price and no promissory note.  Later was told that Fannie Mae is asking for more, no matter what the situation.  I got the approval letter 2 days later.  If your buyer is paying value or better, tell them to &*&^^**.  Its all a game with no morals to them.

I had NationStar ask for a $50,000 seller cash contribution.  The seller countered at $500 and NationStar agreed to it. 

I am thankful to have found this site. I have learned a lot and appreciate each and everyone of you.

Countered back at $500 cash contribution and said no way to the promissory note.  The first counter stated that the investor would only pay $250 towards HOA transfer fees (we have 2 HOA's).  On the second counter (which included the promissory note), REDC said no contribution to the HOA transfer. She made a mistake by stating in Equator that the investor wasn't aware of the counters so I questioned who had the authority to counter on its behalf especially since Counter #1 allowed for $250 only and the subsequent counter tried to eliminate it.

Lo and behold, I received a voicemail today, and the negotiator said that they were 'backing off from the promissory note'  and since the net was higher than anticipated (cash contribution minus the $250), she was submitting it to the investor.

 

These auction-type.com folks are playing a nasty game. They are negotiating without authority, and we, as Realtors, need to put a stop to it now! 

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