Do you always ask the bank on a short sale to issued a payoof statement to your seller without recourse? I do. I just got a fax from a seller we closed in March 08. The bank want him to sign a promissory note of $40,000.00 on a house they no longer owned. However, while I was requesting the short sale payoff from the Loss Mitigation Specialist, I specifically requested that he signed a no recourse letter that I fax to him on my company letter head. He did and fax back to me which clearly show company name and fax number on the edge of the paper. I kept a copyin the closed file and a copy to my seller at that time.
I fax the signed copy to the bank, and was told that the Lost Mitigation Specialist is no longer with the company, so the bank had to swallowed the $40k since their employee signed the letter of payoff without recourse. I am not sure if bank agent misplaced the letter or what, but my seller was happy to know there would not be a $40k balance hanging over their head.
Agent's please when doing short sale always request a no recourse letter. The last thing you want is for a seller to tell the world you misrepresent him/her
Happy Selling Rainer's whereever you are. It's going to be alright
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