Bob Wilson is a 30 year vet of the San Diego real estate market & has seen all aspects of the real estate cycle.
Get to know Bob Wilson
Bob Wilson has been representing buyers and sellers with San Diego County real estate since 1990.
With our dominating Internet presence, coupled with our team of buyer specialists, we cover all of San Diego County and represent buyers and sellers in just about every zip code and in all price ranges.
For a confidential consultation, I can be reached at 858-382-5820 or you may contact me via email at firstname.lastname@example.org.
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The approval you waited months to obtain may be a bad thing?
In California,it may not be, and likely isn't, the full release from financial liability that you think or have been told that it is.
Here is a sample of a boilerplate Countrywide approval that many agents proudly display on their websites as proof of a succesful short sale. Can you find the underlying risk?
what this means to the seller Countrywide and/or its investors may pursue a deficiency judgment for the difference in the payment received and the total balance due, unless agreed otherwise or prohibited by law, if the short sale closes on the loan referenced above. In addition, if this loan is covered by mortgage insurance, the mortgage insurance company may reserve the right to pursue the seller for the deficiency based on the terms of the mortgage insurance policy Furthermore, there may be tax consequences associated with entering into a short sale. The seller is encouraged to seek the guidance from an independent tax advisor, and/or an attorney, before proceeding with the short sale.
If this short sale is contingent upon Countrywide and/or its investors receiving a promissory note, we will reserve the right to collect the full amount on the new promissory note which may lead to us pursuing a deficiency on that balance should the need arise. If the short sale does not close, then we will pursue all remedies under our note and mortgage.
The conditions of the approval are as follows:
Closing must take place no later than or this approval is void. The approved buyer(s) is/are the sales price for the property is Another buyer cannot be substituted without the prior written approval of Countrywide. Closing costs including realtor commission is not to exceed $ . This figure includes the payoff in the amount of $3,000.00 to the 2nd lien. Proceeds to Countrywide to be no less than $3,000.00 The property is being sold in “AS IS” condition. No repairs will be made or be paid out of the proceeds, unless specifically stated otherwise. Seller is to contribute $0.00, to assist in the closing of this transaction. This contribution will be in the form of:
PROMISSORY NOTE (Signed and returned prior to closing): $0.00
CERTIFIED FUNDS CONTRIBUTION (Due before closing): $0.00
If a promissory note is required, it must be signed and returned to Countrywide prior to the close of escrow. It is the responsibility of the closing agent to ensure that the promissory note is signed and returned to Countrywide.
If a promissory note has already been signed and agreed to between the seller, investor and the Mortgage Insurance Company, a signed certified copy must be provided to Countrywide prior to the close of the short sale transaction. It is the responsibility of the closing agent to ensure that Countrywide receives the copy.
*** Sales proceeds will be returned if the note has not been received. This will result in a delay of the transaction and/or possible cancellation of this short sale transaction. ***
The sellers will not receive any proceeds from this short sale transaction. If there are any remaining escrow funds or refunds, it will not be returned to the seller; it will be sent to Countrywide to offset the loss. The property must be free and clear of liens and encumbrances other than those recognized and accounted for in the HUD-1 approval, on which this approval is based. Countrywide does not charge the borrower for statement, demand, recording, and reconveyance fees on short payoff transactions. Do not include them in your settlement statement. Countrywide prepares and records its own reconveyances. Other: All funds must be wired. Any other form of payment of funds will be returned. Payoff funds must be received within 48 business hours of the HUD-1 settlement date. Other: Should the closing be delayed and the Investor/Insurer agree to an extension of the original closing date, the Borrower(s)/Seller(s) will be responsible for any per diem fees through the new date(s) of closing, extension fees and foreclosure sale postponement fees. The Borrower(s)/Seller(s) will be responsible for any additional costs or fees over the stated approved amounts. Realtor’s commission, paid from proceeds, not to exceed $
If the seller is entitled to receive any proceeds based on a claim for damage to the property under any policy of insurance, including homeowner's, lender-placed, casualty, fire, flood, etc., or if seller is entitled to receive other miscellaneous proceeds, as that term is defined in the deed of trust/mortgage (which could include Community Development Block Grant Program (CDBG) funds), these proceeds must be disclosed before we will consider the request for short sale. If we receive a check for insurance or miscellaneous proceeds that were not previously disclosed, Countrywide will have the right to keep the proceeds and apply them to Countrywide’s loss after the short sale. We similarly would have the right to claim the proceeds to offset our losses if it were not previously disclosed and it was sent directly to the borrower.