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Northeast OH Short Sales: Why Won’t My Lender Allow Me To Walk Away With No Deficiency?

Northeast OH – The Stop Foreclosure Institute recently received a question from James. Here was his question.

“We are in the middle of a very long negotiation with a large national lender.

I had my agent put a clause into the contract stating “upon approval of short sale by sellers’ lender, lenders, & or affiliates, client, or heirs will be released from any monetary shortages or deficiencies from said sale of stated property upon successful closing and transfer of title from that date and forevermore.”

The short sale negotiator, Nathan, has advised my agent that he will reject the file and close it out if we don’t remove this from the contract. What do you think?

After reading your comments, I am not sure of what will happen. How should I pursue this? James.”

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

Here was our answer to his question. I think the negotiator is getting his ego involved. Many loan owners waive promissory notes. He is out of line (and breaching his lender’s fiduciary duty to the loan owner) if the following applies:

1. If it is the investor’s policy to not pursue a deficiency.

2. If accepting this short sale will net the investor more money than a foreclosure.

Do these two things apply? You and I don’t have millions of dollars to pursue a lawsuit, but we can contact the loan owner directly to let them know what is happening.

If they are going to lose money not accepting the short, then they need to know about what this lender is doing.

Now, the negotiator has the authority to demand a promissory note depending upon who the owner of the loan is. Find out who owns the loan.

Fannie Mae, Freddie Mac, FHA, and VA will let the borrower go free from all future liability. Obviously that doesn’t apply if there is Mortgage Insurance.

Find out if any of those entities owns or insures the loan. Then tell the negotiator that you will be contacting them directly. Thinking about a short sale?

I can help you short sale your property and get back on your feet. Send me an e-mail at iandymorris@gmail.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 (440) 348-5500

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

Thinking about a loan modification? Our Northeast OH loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Andy Morris.

Andy is a Real Estate Broker at Realty Trust Services.

Phone: (440) 348-5500 . iandymorris@gmail.com.

View My homes for sale at www.rtserve.com.

Andy Morris specializes in loan modification assistance and short sales in Northeast OH. Northeast OH Modification Help, Northeast OH Short Sales, Northeast OH Short Sale Realtor, Northeast OH Short Sales. Northeast OH Realtor, Northeast OH Stop Foreclosure, Northeast OH Foreclosure Prevention, Prevent Foreclosure Northeast OH, Northeast OH Foreclosure Defense, Northeast OH behind in Payments.

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