Short Sales: Sellers
Almost every Short Sale file we take on here at Gryphon Properties & MGMT Co. (GPMC), I get asked by the seller what I think the outcome will be regarding the ‘debt' that is relieved. And my usual response includes an education specific to the seller as to what types of loan(s) they have against their property and to what purpose the money on those loans was used.
Here's the point. The seller usually has this attitude that the total amount of the loss should be eaten by the bank and no responsibility or liability should be on the seller. Now, when we negotiate the file with the lender we are after a final outcome including a total relief of the debt without any judgments/promissory notes. But here is the thing to consider: If the seller used their home's value to go on vacations, pay for a child's college, living expenses, etc. the lender has a very tough time just letting the seller just walk away free and clear!
I had a seller who spent over $100K on a second loan (HELOC) for their child's college education. While there was hardship and the seller did qualify for a Short Sale, the seller could not comprehend why they ‘might' be liable for settlement of the $100K debt, like 10% or so. Totally not clicking with the seller.
I asked the question in this manner to them, "So you used your home [value] as an ATM machine to pay for little Timmy's college (because you did not plan well enough to actually start a college fund for little Timmy when he was...oh say ...2 years old!) and now you are in trouble financially with your job and property and you want the lender to eat your loss 100% and you basically get to walk away with Timmy's college paid for 100% by the LENDER with no recourse or liability on your part??" Makes no sense guys.
The point here is to remember to be realistic with your expectations. Short Sales can help sellers relieve tremendous hardship and debt and evident foreclosure but the concept here is to have a sense of reality with the whole thing! At GPMC we work hard to get the Short Sale not only approved but also with 100% of the loss taken by the lender. And so far we are still at a 100% file approval with no judgments filed nor promissory notes issued by those lenders. If you are in need of a credible Short Sale negotiation TEAM to work for you, check us out our Facebook Business Page here! Or call us at 630-513-3906. http://www.facebook.com/#!/pages/Saint-Charles-IL/Steven-Senters-Short-Sale-Senter/342628328132?ref=ts
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