Posted on: 29th Jul, 2010 08:41 pm
I am located in Florida and am currently in the process of short selling my home. I currently am working with a realtor and a buyer has made an offer that should satisfy the 1st lien holder(BoA) minimum acceptance price. However we are still awaiting an approval letter. We have recieved an approval from the 2nd lien holder(Regions), which currently holds a HELOC on the property. We have included in the sales contract a term that upon acceptance of the offer the lenders agree to forgive the dificency and will take no recourse action. My questions are;
1) Is including the non recourse term in the sales contract sufficient to avoid recourse from the lender, considering that FL is a recourse state by default? Or will I need to make sure that it specifically lists in the approval letter from the lender that no recourse will be taken?
2) The 2nd lenders approval will accept the offer if I pay a portion of the balance of the HELOC. They have listed a 0% interest payment plan or a lump sum at closing. Is this negotiable? Will signing this approval letter prohibit me from filing BK and including the dificiency from the 2nd?
1) Is including the non recourse term in the sales contract sufficient to avoid recourse from the lender, considering that FL is a recourse state by default? Or will I need to make sure that it specifically lists in the approval letter from the lender that no recourse will be taken?
2) The 2nd lenders approval will accept the offer if I pay a portion of the balance of the HELOC. They have listed a 0% interest payment plan or a lump sum at closing. Is this negotiable? Will signing this approval letter prohibit me from filing BK and including the dificiency from the 2nd?
hi guest,
your lender should give you a written document stating that he won't come after you for the deficient balance. if you've a written document, the lender will be bound to follow it.
you can definitely negotiate with the second mortgage lender for a better plan to pay off the loan. however, it is completely the lender's discretion whether or not he would consider your request. signing a document with the lender will not prohibit you from filing bankruptcy.
thanks
your lender should give you a written document stating that he won't come after you for the deficient balance. if you've a written document, the lender will be bound to follow it.
you can definitely negotiate with the second mortgage lender for a better plan to pay off the loan. however, it is completely the lender's discretion whether or not he would consider your request. signing a document with the lender will not prohibit you from filing bankruptcy.
thanks
I am currently working with 1st lender, BOA and 2nd lender, Wells Fargo.
1st lender is not willing to give approval letter unless they get approval from the 2nd lender. We went back to 2nd lender and they said they basically said the same thing. Any suggestion how we can work with 1st lender to get approval?
Sincerely,
Rosemary
1st lender is not willing to give approval letter unless they get approval from the 2nd lender. We went back to 2nd lender and they said they basically said the same thing. Any suggestion how we can work with 1st lender to get approval?
Sincerely,
Rosemary
Hi rosemary!
Welcome to forums!
As you're unable to deal with the first and the second lender on your own, it will be better if you could contact an attorney and take his assistance in dealing with both of your lenders. He will help you in negotiating with both the lenders so that you can get a short sale approval letter.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As you're unable to deal with the first and the second lender on your own, it will be better if you could contact an attorney and take his assistance in dealing with both of your lenders. He will help you in negotiating with both the lenders so that you can get a short sale approval letter.
Feel free to ask if you've further queries.
Sussane