Let me dispel some myths here about short sales. Not all short sale approvals are created equal. Taking 30%, 40%, 50% off a mortgage balance is not that big a deal at this stage in the housing market.
You really see what dire straights the housing market is in firsthand when these extreme short sale payoffs are received.
This one is $186k shorted for $59,100. Now, when the short payoff is silent as to the deficiency but references the purchase contract, then check with your attorney about including words to the effect of "this contract contingent upon (shorting lender) providing full release of liability with no rights to the deficiency" which may effectively produce the same result.
And I think we may have a new short payoff record. One of my negotiators called me a few hours ago to let me know that HSBC is accepting $15,000 as their net on one of our purchases. It's almost getting to where houses are cheaper than cars.
Thanks for tuning into this weeks episode of what's a short sale discount.