Short Sales: How To Convince A Lender To Waive A Promissory Note

By
Real Estate Agent with Keller Williams Realty Tacoma

Seattle and Tacoma,WA –Hi! This is Nathan Olotoa with 59days2sold.com and www.seattleshortsalesagent.com and I specialize in short sales in the Tacoma and Seattle areas.

  – Some lenders are very stubborn about collecting what they feel they are “rightfully owed.”

These lenders are usually a lender that you originally got the loan from. A good example is a credit union loan, or a small community bank.

Another common type is loans that were granted with Private Mortgage Insurance. In our experience, these companies are very demanding.

Discover how other sellers successfully did a short sales to avoid foreclosure clicking here.

They negotiate hard and say they will not approve a short sale without a promissory. However, that is not always the case.

You can often convince them to waive the deficiency if you do the following.

1. Prove to them that you don’t have any assets or any extra monthly income.

2. Prove that your home is worth what the buyer is offering on theshort sale. This is your agent’s job to do. Your agent will put together an agent’s version of an appraisal.

This will include comparable sales and what your property is worth, based on those comparable sales. Your agent will show them that they are better off accepting the short sale.

If you have presented your case well and the lender buys it, then they will usually waive the deficiency or promissory note and accept what they can get. After all, something is better than nothing. Make sense?

Another option is to hire a good lawyer to negotiate for you. Look for a lawyer with experience in bankruptcy.

They can use the threat of bankruptcy to convince the lender to approve the short sale with the deficiency waived. Bankruptcy is very bad for creditors.

If you declare bankruptcy, then it could take 12-18 months before the lender can sell the house. Their right to collect from you would be wiped out in bankruptcy.

A short sale where they get their money today is a much better option. That’s why they’ll usually take that option when threatened with bankruptcy. 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 asknate@kw.com. 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 253-310-1177

Discover how other sellers successfully completed a short sales and request a free consultation by clicking here.

Thinking about a loan modification? Our Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Nathan Olotoa.

Nathanis a Real Estate Broker at Keller Williams-Tacoma.  Short Sales Realtor

Phone: 253-310-1177. asknate@kw.com.

Listed to Sold in 59 days or less

View Tacoma homes for sale and Seattle homes for sale at 59days2sold.com. View my previous blog posts at www.seattleshortsalesagent.com.

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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 Nathan Olotoa's personal views and do not reflect the views of Keller Williams-Tacoma

This information on  Short Sales: Are Lenders So Desperate They Will Accept Any Offer is provided as a courtesy to our viewers to help them make informed decisions.

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