I am an agent working on the short sale of my own property. We received the approval letter from Wells Fargo today. It states, "nothing in this Demand Statement or in the release of the mortgage shall waive the right to seek a deficiency under the loan documents or any of its other rights thereunder, and the obligations evidenced by the note shall remain in full force and effect until paid in full."
They previously requested a $4,000 cash contribution at closing. We replied that we have no cash, as they have seen on our bank statements and we are considering bankruptcy. In the end they agreed to no cash contribution.
After receiving the approval today I emailed the negotiator stating that we need the right to deficiency removed.
She replied, " a payment towards the loss was requested because this was denied a waiver is not a possibility. Thanks!"
Does anyone have a suggestion of how to move forward with a waiver to deficiency judgment?
I need help ASAP! Thanks!!!
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Michelle - Exhaust options to contribute - a relative? buyer? If not possible, ask the negotiator if the investor will look at a second hardship letter explaining why a contribution is not possible... (I bet they'd even consider $500, though.)
That was my first thought. I'm thinking I'll reply saying that a relative offered to pay $300 if they'll waive the right to deficiency. I was hoping that others would suggest the same or give some insight as to what they've done in this situation. I'm afraid this is going to prolong the short sale and scare the buyer off. But, I think I better do what I have to do to get this waived.
Now I'm really confused. I thought banks didn't allow agents to work on their own property's short sales. Does that policy depend on the bank?
I'm not taking a commission. I wanted to do it myself so that the deficiency would be as low as possible.
I think so long as she isn't taking a commission, she can work on her on home sale.
Smitty, it depends alot of the negotiator and the lender. Remember the agent is not getting paid a commission, the broker is. I have seen agents in my office do their own short sales and will full disclosure and get paid.
That is an excellent point, Jeff. As a broker, if one of my independent contractors sold a property (we only charge them for their own investment property sales) the brokerage expects to be paid. Any company held listing (depending on the company structure) is overhead. If the agent sold it without receiving the compensation required by their independent contractor agreement, they would have to pay the brokerage anyway.