I imagine the short sale approval letter I received yesterday from CitiMortgage delights my Sacramento short sale sellers as much as it does their agent. Because an agent's job isn't over when the short sale approval letter arrives. Sometimes, those approval letters contain conditions that require more negotiation on the agent's part.
We might negotiate a work-out plan, similar, in some ways, to a loan modification. For example, the short sale seller might agree to repay a small portion of the debt in cash or by executing a non-interest bearing, unsecured promissory note, among other options.
However, here is the type of short sale approval that agents and sellers love to receive:
Upon receipt of the NET PROCEEDS and a COPY OF THE FINAL SETTLEMENT STATEMENT, CitiMortgage, Inc. will give a full release and reconveyance of their loan as agreed and no deficiency judgment will be instituted.
Sometimes, a short sale bank will put a seller on notice that it plans to pursue a deficiency judgment or collection after releasing the debt, but that condition may not carry any water. Banks don't know the ramifications of a short sale in every single state in the United States. Some sellers are exempt from a deficiency judgment, especially in California. So that type of clause in the approval letter may have no bearing on the seller whatsoever.
That's why I always advise my Sacramento short sale sellers to seek legal and tax advice before I put their home on the market. I give them information about taxation on short sales from the California Association of Realtors and other documents from CAR. It's better for sellers to be fully informed and prepared than caught off guard at the end.
Elizabeth Weintraub is an author, columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you.
The Short Sale Savior, by Elizabeth Weintraub, available in bookstores everywhere and at Amazon.com.
Sacramento Short Sale Agent, Elizabeth Weintraub, has the answers to your Sacramento short sale questions.
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Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.
Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.
The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice. It could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.
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Elizabeth: Love those letters. I am working with Citi now and am hoping they will be as generous to my seller.