Well OK then. BUT.....did you know getting it removed is not enough? "What ya talkin' 'bout Willis?" Having the deficiency language removed from a Florida Short Sale approval letter don't mean squat.
Of course, I am NOT an Attorney nor do I play one on TV. So you need to seek legal advice if this is a big deal. But here's my opinion. Not only would they have to remove the deficiency language BUT they would have to add a clause stating that they will NOT go after you for a deficiency. AND I personally don't think this would make a difference either.
So you have to ask yourself "Is going ahead with the short sale better than being foreclosed on?" (Insert the NOT an attorney language). My opinion is "YES". Yes a Short Sale is better than being foreclosed on. At least with a Short Sale you have tried to do the right thing. However a Short Sale is NOT a free walk in the park. There are consequences.
Of course, I am NOT an Attorney nor do I play one on TV. So you need to seek legal advice if this is a big deal. But here's my opinion. Not only would they have to remove the deficiency language BUT they would have to add a clause stating that they will NOT go after you for a deficiency. AND I personally don't think this would make a difference either.
So you have to ask yourself "Is going ahead with the short sale better than being foreclosed on?" (Insert the NOT an attorney language). My opinion is "YES". Yes a Short Sale is better than being foreclosed on. At least with a Short Sale you have tried to do the right thing. However a Short Sale is NOT a free walk in the park. There are consequences.
- Your credit may be messed up.
- You may have difficulties getting a mortgage for a few years.
- You could be liable for some taxes.
- Maybe that deficiency will come back to haunt you.
- You will have to move out of your house.
I guess my point is that you need to take this stuff serious. Do your research. Seek the advice of a competent Attorney and tax professional. Then after all of your questions have been answered to your satisfaction....sleep on it. When you are ready to go the path of the Florida Short Sale, call me. I'll be able to help. OK?
Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.
Want to find out more? www.CentralFloridaShortSales.com
***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.
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Bryant, nice post. We have customers say the same thing. We have also had banks ask for a defiecency and actually accept lower offers from the seller in a counter with them.
I agree totally that I would rather do a short sale than bankruptcy.
Bryant,
That is a great post!!! We are having a big seminar in San Diego with SDAR tomorrow and it is all about the short sale and the consequences.
Bryant -Choices - have your home "repossessed" or work with the lender to sell it for them? It's common sense as to which would be better for your financial future. Great write-up.
As you say, it is "the better of two bads." But still better.
BB,
Thanks for always posting such informative stuff my man! I appreciate it.. WE appreciate it.
The devil is in the detials. Good for your clients that you are looking out for them and even pointing it out.
BB,
Thanks for always posting such informative stuff my man! I appreciate it.. WE appreciate it.
Bryant - Great post. So many people I hear think a short sale is a free ride, that the bank will just write off the deficiency. Thanks for posting this.
How timely to speak about Willis since I believe he has a new book out. It is vital to always have clients discuss this matter with an attorney. We do not want to be liable going forward! Great information in this post!
BB~
Also possibly the Better of TOO BADS...
Hello Bryant~ Getting the nuclear rock out of our pockets is crucial! Source of the Source! Great Post!
BB, they have been much more willing to seek deficiency judgements in foreclosures, at least in my area this is what we're seeing.
Bryant - If only i could convince homeowners. I have a couple of homeowners who really are content to let their home go through foreclosure instead of going through a short sale.
I wasn't running into short sales so much up here but I'm starting to now and it's a pain. Great info as always in your post!
Re: Robert's comment... The devil's in the LENDERS! They're evil... pure evil I tell you. >=I
BB, I personally think that once the dust settles the lenders will be more leaniant towards short sale sellers, vs a mortgagor that just threw their hands up and just walked away!
Hope all is well with you and TLW.
Katrina Madewell
Tampa FL
BB, having the deficiency language removed on the approval letter may not be enough but at least it is better than having it there. :) Overall, it is better than going the foreclosure route.
Had an initial consultation yesterday. Prospect has done a LOT Of homework and research. I urged him to do just a bit more, with a tax advisor and with legal advice. As you say, always, always, cover the ground rules.
You are right on the money BB. Just think about how many Realtors that represent short sellers that don't even know about doing the minimum and getting the language removed.
Here's my prediction...
There's going to come a time where having a short sale on your record is not going to be a big deal. With the passing of time the mortgage companies will cave. Why? Cuzz, having that many Consumers unable to obtain mortgages is going to create a mess within their industry. How long can they hold on to standards that don't mesh with the current mess they helped to create?
I am not an Atty and I may be wrong. However, I'm right a lot more than I'm wrong :)
TLW...ROAR!
Bryant - I think it is on an individual basis what may be best for each homeowner. For some, a short sale, and for others it would be foreclosure. But, like you said, you must do your homework and figure out what is best in your situation. Either way, one must be responsible for your own actions.
Bryant - The hard thing for some sellers is when they do consult their local tax or legal professionals, they get incorrect advice because the "professional" was uniformed regarding tax or legal ramifications of the foreclosure vs the short sale, I see this almost every day in our market here in Southern Oregon.
Bryant, you can also include in the list of consequences the mounds of paperwork and phone calls done on the behalf of the seller by the Realtor which lasts for months. Great post!
Sorry but I had to disable comments due to all the link spam. I had 40 in one day on this post.