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RBC - Straight from the horses mouth....

Posted by Jaime Kosofsky on July 7, 2011 at 12:55am in Short Sale Discussions

 

Q: I have situation where the Husband and Wife signed a note. They are going thru a Short Sale and the second is with RBC.  The Decree of Divorce states Husband is 100% liable for the note.  Will RBC release Wife from deficiency under this circumstance.

 

After the short sale is done, is there any negotiation of the deficiency? What terms do you normally agree to?

 

A: RBC will not release the wife from the note.

 

The deficiency balance is not forgiven, in whole or in part. Terms of the repayment will be determined by the financial information received when the short sale is submitted.

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Replies

  • Jeff Payne July 7, 2011 at 2:10am
    RBC will not negotiate a full release, they expect the borrower to approach them after the sale to work out the deficiency.  Only problem is that RBC is famous for pursuing the full deficiency before the homeowner even has a chance to work it out. 
  • Smitty July 7, 2011 at 1:09am
    They should have refinanced her name off the note.  You should negotiate the deficiency at approval time.  OR before if you know it's coming.  Really the investor of the note sets the terms of the deficiency.  Sometimes, no matter what it cannot be released.  Usually by offering the lender more money you can have a chance at getting the deficiency released.

    I find second lien holders are tougher to get a full deficiency release from.  Prep your sellers.
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