Quote:
Originally Posted by windnwaves  I got a short sale approval from National City Mortgage who holds the first and only loan on a rental property I own in Florida.
I must agree to take a $10k note with the PMI company for the short sale to go through. I am ok with that, but want to know for sure that I'm being released from personal liability for the deficiency, which is $200k+.
The letter from National City states:
"We will prepare and record the Satisfaction of Mortgage/Deed of Trust. We will also report to the Credit Bureau "legally satisfied for less than the full debt."
Does this mean that the lender and the PMI company will not pursue me for the deficiency?
I need to decide quickly on whether to accept and would appreciate guidance on this point. Thanks! |
When they say we will prepare........., check if the letter states, National City, the investor and the insurer will not pursue any deficiency judgment against you and they will report it as legally satisfied for less than the full balance, the balance should show zero balance and therefore you will have no obligations.
When you sign the note for $10k, ask the Negotiator to put it in writing that the PMI will not pursue any deficiency judgment against you and the promissory note to pay $10k also should state legally satisfied for less than the full balance and the balance should show zero balance. You have to have two separate letters one from National City and one from the PMI or one letter that states both of them will say that the Short Sale and the promissory note for 10K is legally satisfied for less than the full balance. Lenders will make you feel that you have to make a decision now or else. But you have to think of you and having everything in writing is your only protection you have in this kind of transactions.
Do not sign anything in a rush, if you don't understand the terminology they use, do not sign it. Keep asking if you don't understand. It's best that you ask a lawyer in your state to check the letter and explains to you what it means. This is for your own protection, especially that Florida is a recourse state..
Thank you and God bless you.
Information given is not a legal advice.