From the REALTORS® we work with to the sellers we help, all seem to want to know if we take on their case and negotiate their short sale, whether or not they’ll owe a deficiency.
Of course, we can’t guarantee (no one can) that your lender(s) will agree to settle the accounts. That is, not ask for any further payments. Some lenders ask without fail while others will never ask. What we can guarantee is that we will exhaust our resources and knowledge to prevent you from having to pay anything more; we want you to be able to walk away owing nothing.
Unfortunately that doesn’t always happen.
But the good news is a deficiency (usually what’s called a “promissory note”) can actually be a positive thing. Chances are good that if you need a short sale, you are behind on your payments, and that’s had a bad effect on your credit.
A promissory note is an extended, low interest or interest-free, unsecured loan. It is an excellent and easy way to repair your damaged credit. Also if you find yourself facing another financial hardship and not able to make payments, there is no collateral on the loan. This means there is no property – houses, cars, boats – on which the lender can foreclose or repossess.
We work hard to keep you out of these situations, although at times it may be unavoidable. If you have any questions about short sales or deficiencies or promissory notes, feel free to give us a call – we’d be glad to answer any questions or find a way to help you.
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