Short sales are prominent with Distressed Homeowners who can't make ends meet and they just simply can't make their mortgage payment for whatever life changing event occurred or an adjustable rate mortgage making their payments unaffordable. 

Now enter the homeowner who has money in the bank, they've been making their payments on time but they want to move or need to move for whatever reason. However, their home isn't worth what they owe on their mortgage and they don't have the capital to make up the deficiency all at once should they sell for less than what is owed. Enter the Promissory Note:

Meet Mr. and Mrs. I have too much money.

They purchased their home in 2006 for $650,000 and owe $640,000. Their home is now worth, today, $490,000. Mr. I have too much money has been transferred out of town for a job in Vermont. What do they do? They sell their home for $490,000 and agree to a Promissory Note for the deficiency of $150,000. Ideal situation for the Lender as they'll not experience a loss and avoid a typical Short Sale transaction where they write off the deficiency.

I'm sure we'll being hearing more about these homeowners as we continue on with declining markets across the nation. What lenders will be readily open to this strategy and which Lenders will not? Will they be able to respond to those homeowners who aren't behind with their payments in a readily fashion as they've been having difficulty dealing with the typical insolvent homeowner and streamlining their departments. Perhaps these transactions would be expedited in light of the Lender not being at a loss. They'll probably not be at a loss for words and will promptly answer their phone and email.

Need more information on Real Estate and the Short Sale. Please call me or visit me here or at my website as I'd be glad to help.