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1. Escalate, with a letter from seller explaining why they cannot pay...and perhaps they will go bankrupt. 2. Often Chase will give full settlement language if seller makes a small contribution, it has worked many times for us as CASH is KING.
1. Escalate, with a letter from seller explaining why they cannot pay...and perhaps they will go bankrupt. 2. Often Chase will give full settlement language if seller makes a small contribution, it has worked many times for us as CASH is KING.
Mesare. A judgment comes from a Judge. Chase may not be waiving their right to sue for a judgment but they can't give the seller a deficiency judgment. There is always a deficiency with a short sale. The deficiency is the different between what the borrower owes and what they pay.
So the question is "What is going to happen to that deficiency?"
What exactly is the wording that Chase has put forth that is scaring the seller?
Thanks, Bryan, good point! It says: "Acknowledgment of borrower: By signing below, the debtor acknowledges that he remains liable for any amount still owed under the first lien mortgage transaction". And the approval's short sale terms and conditions states: "Please note this amount is for the release of the lien only and that you are responsible for all deficiency balances per the terms of the original loan documents"...
Any suggestions???
Bryant Tutas said:
Mesare. A judgment comes from a Judge. Chase may not be waiving their right to sue for a judgment but they can't give the seller a deficiency judgment. There is always a deficiency with a short sale. The deficiency is the different between what the borrower owes and what they pay.
So the question is "What is going to happen to that deficiency?"
What exactly is the wording that Chase has put forth that is scaring the seller?
Mesare. It basically means they may or may not contact the borrower after closing to make some arrangements for the balance owed. At that time they can certainly try and negotiate a settlement if they are able. Usually the lender is using this wording because the borrower has inco9me and assets that would justify some sort of contribution on their part. OR it could just be a requirement from the investor to leave that language in the approval. Unless the borrower has high income and assets the chances of the lender going in front of a judge to get a judgment are probably slim to none.
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Oh, Wendy... and how much is a "small contribution"...???
I don't know all the deatils and how many dollars are involved, however it looks like Chase is willing to let this short sale proceed. Given the seller's alternatives and based on the circumstances, I feel the options are pretty good for the seller.
If the seller can't get a modification or, if it goes to foreclosure, then a small contribution or even small deficiency judgement all of sudden doesn't look so bad, right?
Great, guys... Will keep fighting... Seller will probably be OK with the $500... better than a bankruptcy that will stay for 10 years!
Bryant, who does the newsletter come from (what address?). How can we get the older issues?
Mesare. They come form Short Sale Superstars. Check you spam folder tomorrow in the morning if you don't receive it.
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