Short Sale Approval Letters - What you should you be looking for
Good advice for short sale sellers and their listing agents.
Short Sale Approval Letters - What you should you be looking for
The Malibu Real Estate Resource Guide
Malibu California Real Estate ׀ Malibu Homes for Sale & Lease ׀ Malibu Land
The Short Sale Approval Letter
Once your lender approves a short sale, a letter will be issued by the lender that you will have to sign. If you have multiple lenders, each on will issue a letter unless some of them are being repaid completely out f the proceeds of the sale.
The language contained in the letter is very important. As a seller, the thing that should be the most important to you is language that specifically states that the lender will not sue you for a deficiency judgment. Without that language, you should ask your real estate agent to go back to the lender and ask them to include it. In cases where a lender refuses to include such language, there are circumstances in which you may be better off letting the lender foreclose. For instance, if you live in a state that doesn't allow deficiency judgments on a first money purchase loan and you have not refinanced your property or taken out a second loan. Again, you should consult a real estate attorney in your area if this becomes an issue.
For additional information on Short Sales & Forclosures, click here.
Bobby Lehmkuhl ׀ Bobby@4Malibu.com ׀ 310.365.7696 ׀ Broker Lic. #01457517
Danielle Dutcher ׀ Danielle@4Malibu.com ׀ 805.341.8769 ׀ Broker Lic. #01463653
Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although information has been gathered from sources believed to be reliable, please note that individual situations can vary, therefore, please consult a professional for specific advice.
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