Special offer

Bergen County Short Sales: Why Won’t My Lender Allow Me To Walk Away With No Deficiency?

By
Real Estate Agent with RE/MAX Properties - Saddle River

piggy-bank-crutchesBergen County NJ – The Stop Foreclosure Institute recently received a question from James. Here was his question.

“We are in the middle of a very long negotiation with a large national lender.

I had my agent put a clause into the contract stating “upon approval of short sale by sellers’ lender, lenders, & or affiliates, client, or heirs will be released from any monetary shortages or deficiencies from said sale of stated property upon successful closing and transfer of title from that date and forevermore.”

The short sale negotiator, Nathan, has advised my agent that he will reject the file and close it out if we don’t remove this from the contract. What do you think?

After reading your comments, I am not sure of what will happen. How should I pursue this? James.”

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

Here was our answer to his question. I think the negotiator is getting his ego involved. Many loan owners waive promissory notes. He is out of line (and breaching his lender’s fiduciary duty to the loan owner) if the following applies:

1. If it is the investor’s policy to not pursue a deficiency.

2. If accepting this short sale will net the investor more money than a foreclosure.

Do these two things apply? You and I don’t have millions of dollars to pursue a lawsuit, but we can contact the loan owner directly to let them know what is happening.

If they are going to lose money not accepting the short, then they need to know about what this lender is doing.

Now, the negotiator has the authority to demand a promissory note depending upon who the owner of the loan is. Find out who owns the loan.

Fannie Mae, Freddie Mac, FHA, and VA will let the borrower go free from all future liability. Obviously that doesn’t apply if there is Mortgage Insurance.

Find out if any of those entities owns or insures the loan. Then tell the negotiator that you will be contacting them directly.

Thinking about a short sale? I can help you short sale your property and get back on your feet. Send me an e-mail at jlockard@remax.net. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail. If you prefer, then you can call me at (201) 825-6600 x343 or on my cell at (201) 674-3114. If you prefer, just fill out the form by clicking the words, Contact Me below:

 

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Bergen County Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, James Lockard.

James is a Real Estate Agent at RE/MAX Properties.

Phone: (201) 825-6600 x 343 Cell: (201) 674-3114. jlockard@remax.net

View My homes for sale at www.BergenCounty-Homes.com.

James Lockard specializes in loan modification assistance and short sales in Bergen County New Jersey. Bergen County Loan Modification Help, Bergen County short sales. Bergen County Short Sale Realtor Short Sale Realtor. Bergen County NJ Short Sales. Bergen County Realtor

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

James Lockard, RE/MAX Properties, and the Stop Foreclosure Institute are not associated or affiliated in any way, shape, or form with the government. Our services have not been reviewed, endorsed, or approved by the government or your lender. Most lenders willingly work with agents on short sales. Why?

Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.

However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.

If you stop paying your mortgage, then you could lose your home and damage your credit. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.

The views expressed here are Lockard’s personal views and do not reflect the views of RE/MAX Properties.

This information on Bergen County Short Sales: Why Won’t My Lender Allow Me To Walk Away With No Deficiency? is provided as a courtesy to our viewers to help them make informed decisions.

Comments (1)

Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

I would think the negotiator would be bound to pass on any request to the lender. If they say no they say no. I know folks who routinely included reloacation assistance of $3000 or more, depending on circumstances.

 

Nov 02, 2011 02:05 AM