Short Sale Rocklin – What if my lender demands a promissory note or they will not approve the short sale?

Real Estate Agent with Roseville Rocklin Real Estate - Keller Williams 01489482

Short Sale Rocklin – Here is a topic that many Short Sale Agents fail to discuss with their clients. What if my lender demands a promissory note or they will not approve the short sale?

Promissory note demands are coming from Banks that service your loan, Mortgage Insurance, and Investors looking to mitigate their loss.  In many cases, with enough documentation and hard-nosed negotiations, promissory notes can be waived from the Short Sale Approval Process.  However, there are some cases where a promissory note is unavoidable.

A promissory note is not the end of the world. It will take a lot of work on their end to collect from you.

If the lender forces you to sign a promissory note, then you may consider signing it and just don't make a payment. You may be able to re-negotiate the promissory note after it has been signed for10 to 30 cents on the dollar.  If you don't want to pay at all or don't have the means to pay it, here is what we recommend that you do to avoid paying the promissory note.

It takes time for the lender to move your file out of the collections system. This will last for anywhere from 1 month to 6 months.

The rest of this post is simply my opinion. It is not legal advice. I am just telling you what I would do if I was in this situation.

Simply tell the debt collectors that you are trying to avoid bankruptcy. Do not give them any more information! Don’t dispute that you owe them money.

And definitely don’t agree to pay them anything, or tell them that you might be able to pay them. In my opinion, you are better off just hanging up on any collector that calls you.

Anything you say can and will be used against you. This is why you are better off not saying anything. After a while the phone calls and mail will stop. You may never hear from your lender again.

If you were defaulting on your mortgage payments before, what makes them think you are going to pay now!  Banks probably expect a high default rate on promissory notes!

In order for the lender to get you to pay, they will have to garnish your wages or your bank account.

That isn’t easy to do. There are many legal defenses you can use to stop them from garnishing your wages.  Talk to a lawyer as they will know the different ways you can stop a garnishment and which ones are the best options in your unique situation.

Now for one last strategy to stop a garnishment: Protesting. Yes, that’s right. Stand out in front of the local bank branch. Hold up a sign telling your story. Just make sure your sign appeals to most people driving past.

In many cases, the lender will stop the garnishment. They don’t want the bad publicity. I know someone who threatened a large national bank with protests.

A Vice President of the bank called them a few days later and resolved the situation. This is all based on one simple thing. A bully always picks on the weaker victims.

Sure they will beat up on little kids. But, there is always one little kid who fights like crazy. They use whatever they can to defend themselves against the bully.

In the fight the bully gets hurt. Maybe not bad, but they get hurt nonetheless. Next time they are looking for a victim are they going to beat up on that little kid?

No. They’ll find another victim who won’t put up a fight. Very few people fight. They just pay the lender. That’s why the few people that do fight get preferential treatment.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (916) 580-6084

Thanks for reading this, Mark Peek.

Mark is a Real Estate Agent at Keller Williams Realty. Rocklin Short Sale Agent. Short Sale Rocklin:

Phone: (916) 580-6084.

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Mark Peek specializes in loan modification assistance and short sales in Rocklin CA. Rocklin Loan Modification Help, Rocklin Short Sales. Rocklin Short Sale Realtor. , Short Sale Realtor. Rocklin CA Short Sale. Rocklin Real Estate. Short Sale Rocklin

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. 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. The views expressed here are Mark Peek's personal views and do not reflect the views of Keller Williams Realty on a Short Sale Rocklin.

This information on Short Sale Rocklin – What if my lender demands a promissory note or they will not approve the short sale? is provided as a courtesy to our viewers to help them make informed decisions on a Short Sale Rocklin.

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