I am annoyed! No more than just annoyed! Dissed and annoyed.
My customer had all of the ramifications of a short sale explained to him before he agreed to a short sale. At the end of April, I submitted a short sale offer to his lender. Considering the current market, the offer was huge, only $12,500. less than owed. How good is that? My first short sale had two mortgages, and both lenders lost more than $50,000.00.
The lender countered with a request that the seller sign a 12 year mortgage at 0.01% interest for the shortfall. I called my customer and explained the counter. He almost blew a gasket. He said to tell them to "just foreclose". I explained that the offer should be countered and that at its worst it was better than a foreclosure, because the bank would take an even bigger loss, his deficit would increase, and the bank could still come after him for a deficit judgement and that would be at about 11% interest.
My customer was adamant, so now I'm sitting here having a little rant.
Having just told the bank what my customer told me to tell them, I feel a huge loss for my customer, who acts as if the grey stuff between his ears is leather. Foreclose over $12,500? You have to be kidding I wanted to say. Foreclose, and take a bigger and more expensive hit from the bank? You have to be stupid!!!! I wanted to say. But I gently agreed to my customers terms even THOUGH HE IS WRONG! WRONG! WRONG! And never will be RIGHT with his mind-set.
But... on the other hand, I should have prepared him better, and it is HIS LIFE, not mine.
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