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You can also have your seller put together a financial statement of projected expenses, including what their estimated rent will be, and new income and present that to your negotiator. If there is no room, tell your negotiator this is simply not possible or practical for this family; Fact--they CAN'T do it. If they happen to be able to afford it, then they should do it--that would be the appropriate and ethical thing for them to do considering all the rest of the obligation they are walking away from. If they can scramble up some cash, ask them to offer that in lieu of a Promissory note. I've had a bank be satisfied with actually a small amount because we supported where the funds were coming from and that that was all that was available.
Just got off the phone with the seller. He said he will not contribute anything. Nada. He feels that since they have his house, he shouldn't have to pay anymore. I told him it will kill the deal and he said he thought that might happen. He already did a financial statement and sent it to Chase three weeks ago. I was not aware of it.
If you have access to a GOOD document or article on the consequences of a foreclosure vs short sale, forward that to him. He's going to walk around with a foreclosure curse on his credit for at least 7 years. Credit Reports don't even have a reporting for a short sale--just the accumulated lates and then the status of the paid account (Paid infull-paid as agreed, paid settled, paid unrated, or paid less than owed.) He won't be buying even a car for a long time if he forecloses. It could affect his getting hired or not in certain jobs. $1500 is a reasonable amount. Sure he doesn't have his house and lost all that he put in to it, but present the scenario of the market not having dropped as much as it has and what if this were a regular sale and he had his portion of costs any way? He could be bringing $1500 ANYWAY to break even on taxes, his title policy for the Buyers, HOA fees, other closing costs of title, commissions and marketing expenses, etc., inspection item results--anything. He should contemplate that and the time urgency related with closings and that the bank is doing him a FAVOR--offering him an alternative that helps mitigate EVERYONE's losses, including his. How much commission is the bank paying? What did you offer on the mls to the Buyer Broker--hate to go there. $1500 is truly a good offer in exchange for what he is getting, especially in considering the consequences of the alternative. If he truly can't and he's not just being ornery, tell him you will go to bat for him but need to document that there is nothing there or accompany your request with a hand written letter from him to your negotiator detailing politely why he cannot. If he is just being ornery, I would start my conversation with my client that this is a moment of truth time to comtemplate and is going to have lasting consequences that may not be important to him now, but could be a year, two years, five years down the road, that I'm going to send them some information, and we will talk later after they have a chance to look over it. Email it to him if he tends to not listen and dominate your attempts to speak to him.
Jeanette Becker said:Just got off the phone with the seller. He said he will not contribute anything. Nada. He feels that since they have his house, he shouldn't have to pay anymore. I told him it will kill the deal and he said he thought that might happen. He already did a financial statement and sent it to Chase three weeks ago. I was not aware of it.
Closed on Friday. The deficiency is being forwarded to the collections dept.
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