Replies to This Discussion

Permalink Reply by Stephanie Lim on July 8, 2010 at 12:09pm

I've had this situation with a judgment from an unsecured personal loan. The title company attorney had to call the bank that had the judgment on the unsecured note and get them to authorize the sale of the house in writing. It was explained to them that the seller had no proceeds coming to them so they agreed to let the home be sold. I had no idea this could happen until it happened to one of mine. It opened my eyes to the fact that unsecured wasn't necessarily unsecured. Good luck!

Permalink Reply by Brigitte Powell on July 8, 2010 at 12:12pm

That's why you do the title search when you list it as a short sale. CYA.

Permalink Reply by Louise Dela Cruz on July 8, 2010 at 1:42pm

My sentiments exactly Brigette!!!!!! This only has to happen once and it should never happen again. If it is a judgement I would refer my clients to an attorney ASAP.

Brigitte Powell said:

That's why you do the title search when you list it as a short sale. CYA.

Permalink Reply by Katerina Gasset on July 8, 2010 at 2:33pm

WOW, That is another reason I love doing short sales in Florida, asset protection! You can not attach credit card to your homestead property. In fact, only IRS, State Taxes, Mortgage, HOA and mechanics liens- We had a bank try to put a lien on a short sale here that was our seller's homestead for 250K and all we had to do was tell them they can't do that here!

Permalink Reply by Wanda martinez on July 9, 2010 at 12:13pm

Hello Dee,
I just got a short sale letter approval from FlagStar:). The homeowner had a credit card lien of $8K on the property b/c it was not homesteade it (depending the state if the home is homestead it they cant lien your primary residence) but this one wasn't. The offer was a strong offer so I talked to the negotiator on the risk of loosing that offer due to the time on the market and its location vs this offer.
At the same time talked to the buyer and seller about the situation in case they need it to increase their offer or bring money to the table.
I also called the bank for that put the lien and negotiated 50% on the note for only$4K to clear the lien. They said yes to the 50% reduction on the note and gave me the legal letter 3 wks ago. so we are closing Monday...
Hope this could help a bit,
Thanks,
WDA

Permalink Reply by Brigitte Powell on July 10, 2010 at 12:02pm

Yea Wanda!!!! :-) Yahoo!! :-) Great job!! :-)

Permalink Reply by Dee Garcia on July 15, 2010 at 10:59am

I know we ALWAYS do a title search at the beginning to avoid this exact situation. The judgment came up at the end when the title company did their final title update, prior to closing!

Brigitte Powell said:

That's why you do the title search when you list it as a short sale. CYA.