Learn From Marlene’s Experience: Short Sale Deficiency Stories
Marlene is a short seller we have been in contact with for the past couple of years now. Our short sale experts in Washington unfortunately weren’t able to help her as she was in California.
Please read a short excerpt of her story below:
“So in summer 2010 we were left with the deficiency balance, which our realtor overlooked during the negotiations. One could forgive that, as SSales were somewhat new at the time, at least to her. Chase has harassed us in various ways since then, but nothing scares me anymore! They gave the balance [$78k] to a coll. agency, etc., and we’ve had many a strong-arm call trying to intimidate us into paying. We have resources, but nothing like the def. amount, and because most are retirement money, I think they can’t get at it. My view is that Wall Street has done nothing for Main Street, and I’m not paying it, unless forced to. So, fast forward. We hired an attorney last year, my husband fearing the worst”
The reality is, not all short sales are created equal. What is MOST important in a short sale transaction is the approval letter document. This document will contain the terms of your deficiency post short sale. If there is no verbiage on the approval letter, this is NOT good.
Here are a few scenarios you may read on this document:
- “We reserve the right to pursue for deficiency”
- *No verbiage about deficiency
- “Settled for less than what was owed”
What I tell a lot of our short sale clients is DO NOT SETTLE. It will come back to haunt you as we saw in my previous article.
Make sure that you are getting the verbiage: “Settled for less than what was owed” as this will release you legally from liability in the future.
Agents who are not well versed with short sales will allow the transaction to close without getting the deficiency released on paper and I have seen over and over again the horrendous after effects this can bring.
Make sure you are working with an expert in your area. If you are in Washington State, I have found the top short sale experts to work with. If you do not live in Washington state, you can submit your information and I will find experts in your area.
Contact me here to get a free consultation and/or email me at Peter@seattleshortsaleblog.com
Hope this helps