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Email from Potential Short Sale Seller

To: Wendy Rulnick
Subject: RE: Listing Navarre House Short Sale

I heard good things about you, while we lived in Florida. I did a Google search to find agents with Short Sale experience, and your name popped up. I looked at your site and decided to contact you. My husband and I talked last night and he is unsure if he wants to list the house right now. He's worried that HSBC will come after us for the outstanding loan balance, after the sale of the house. They seem to be unwilling to negotiate right now, so he wants to wait to discuss that with them. In your experience, do most lien holders usually go after the homeowner for the remaining balance?

I thought my husband and I were on the same page, but he needs a little more info before we proceed. I don't want to waste your time so I will contact you after we speak to HSBC about what they will do with the loan balance.

Thank you for contacting us so fast. We will be in touch soon.

Sincerely,

"Sally"

From: Wendy Rulnick [mailto:itswendy@rulnickrealty.com]
Sent: Friday, September 19, 2008 9:30 AM
To: "Sally"
Subject: RE: Listing Navarre House Short Sale

Normally with a Short Sale there is no deficiency judgment. That's the point of a Short Sale. In some cases, the lender asks for a small promissory note at 0% interest to be paid over 5-7 years. If the lender agrees to the Short Sale, you will get their approval in writing, so there's no question. A typical approval letter will read, for example, the lender "will not pursue a deficiency". If the property goes into foreclosure, however, they can pursue the full unpaid balance.

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Posted by Wendy Rulnick "Its Wendy!" Destin Short Sales on 09/20/2008 07:43 AM

Comments (7)

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Originally posted at: Destin Short Sales- Emerald Coast Florida Real Estate: Email from Potential Short Sale Seller

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7 Comments on Email from Potential Short Sale Seller

SEP

2008

Thanks for the post Wendy. Interesting. I'm doing a Wells Fargo short sale and the second (Wells Fargo HELOC) is threatening a deficiency judgement. But, they are about to back down soon.

Wendy: And unfortunately, there are agents in the marketplace not warning their sellers about this possibility. I have been concerned that after all the melee of the foreclosures slows down, the staff attorneys at the banks may be looking for something to do. What a great use of their time - filing deficiency judgements... Hmmm.... Something to think about and make sure our short sale clients are as protected from as we can ensure...

Gabe - I haven't heard about Wells doing that! I am starting to see if the second has sent file to collections, they're starting to want promssory notes for full amount. The law mills work on percentage of what's collected. We better start warning our Sellers not to let it go that far.

Steve - I think it's ridiculous too. Huge expense.

I get questions from home owners on these subjects alot. Many have no idea how this process works.

Hope - You're right. There's a lot of material available, but it's a lot to digest.

Great post Wendy...there is so much misinformation out there. I've had similar questions, with clients saying that's what the bank told them. Perhaps a scare tactic, but the language you mention cover it all!

Laura - Thank you. I probably should add that a few junior lienholders won't agree except for the whole amount in some fashion, but this particular seller has one mortgage...

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