My first question on this forum: At what point do I start asking the bank to release the deficiency against my client? I don't even know if I asked that correctly. What I'm asking is, I don't want my client to have a deficiency at the end of this short sale.
It is an FHA loan. We have already submitted the package with an offer, an appraisal has already been done though I have yet to hear anything about it.
The file was handed to a negotiator who told me she is now done with the file and will be submitting it to Quality Control and if all documents are acceptable then it will go to phase 2 negotiator and I will be negotiating at that point.
Is that the point in which I start asking for release? and more importantly, HOW do I ask? In writing on a faxed sheet of paper, is there an official form, etc,,??
I joined this group because I need to do this first one right by my clients, and learn from you all for my future ones.
Thanks in advance.
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Julissa. Since it's FHA there is no deficiency. The lender is paid in full from the FHA guarantee.So on this one you don't need to worry about it at all.
With a normal short sale you want to start asking for a "Waiver of deficiency" when you submit the short sale package. Always put the request in writing. Also the sellers should place the request in their hardship letter. I have my sellers place at the end of their hardship letter...."We humbly request that you accept this short sale request and release us from any future liability. We are requesting a full waiver of deficiency."
Really?!?!? No deficiency? Oh my starts! That's the best news I've had in a long time. I have been spending hours since I became a member last week reading the discussions here to get that answer but had not yet seen anything that expressly stated that.
Oh wow. This is great incentive for my sellers to hang in there b/c they have been so fed up with BoA that he said he'd just let them foreclose but now I can share that with him he would really work harder at getting me current docs. Is there any govt document that states that so I can actually show it to him?
Just read your approval letter carefully just in case the servicer tries to slip something in. In fact, have the sellers attorney review it. All states are very clear: Anyone can do short sales, but review of approval letters and deficiency language can be taken as practice of law.
Every thing you need is right here in the FHA group. http://shortsalesuperstars.com/group/fhashortsales