What Northern Virginia Short Sale Sellers Need to Know about Promissory Notes
Northern Virginia short sale sellers are not always given a "get out of jail free" card when it comes to gaining short sale approval from their mortgage holders. More frequently, mortgage holders are asking for a certain amount of money to repaid at settlement, in the form of a cash contribution, or through a a promissory note (signed agreement to repay through pre-determined installments).
The amount is a portion of the remaining balance of the loan, not satisfied by the proceeds of the home sale. How the mortgage holder determines the amount they are asking for is unknown. When the mortgage holder asks a short sale seller for a cash contribution, or a promissory note, the following almost always applies:
CASH CONTRIBUTIONS OR PROMISSORY NOTES CAN BE NEGOTIATED DOWN!
Because I have the experience of closing many short sales, I know how to deal with mortgage holders. I also know that when it comes to cash contributions or promissory notes, the mortgage holders always ask for more than they expect to get. It's rule number one of negotiations.
I advise my Nothern Virginia short sale sellers to always counter the figure that the mortgage holder is requesting. What's the worst that can happen? That's right! They might say NO. In that case, you're in exactly the same position you were in to begin with.
Experience counts in short sales. In the cash of a cash contribution or promissory note, the experience of your agent will directly affect your wallet. Choose wisely.
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