Quote:
Originally Posted by vkswede  Faith,
I'm short saling my townhouse in CA. I have a short sale specielist who is taking care of it. both loans are with CW 1st is 300K and 2nd is 58 and the agent that I;m working with lowered the listing price to 175K. my question is when do I ask for written request from CW for not pursueing any deficiency judgment against me, and I assume that the agent whom I dealing with would know that? thanks |
---------------------------
Once you have an offer from a buyer your agent will prepare the Short Sale package which includes the HUD, offer. You will need to give an authorization letter to
CW to talk to your agent. You have to let your agent and the
CW Negotiator know that you want in writing that
CW, its investors and insurers that they will not pursue any deficiency judgment against you.
CW will try to have you sign a prommisory note that you will pay for the 2nd mortgage, just firmly and nicely say no. The Short Sale has to covered for both loans. They will try ok we will settle the 2nd mortgage for $10k instead of $58k otherwise the PMI which is Republic Indemnity will not release the 2nd mortgage. Just say no. Tell the negotiator that the prices of the homes keeps going down and if he does not approve it right away the prices might go down and the buyers might back out. I had 6 buyers backed out during the 1st listing and 1 buyer backed out on the 2nd listing and 2 more buyers waiting for
CW's approval of the Short Sale.
After
CW approves the Short Sale, the negotiator will inform your agent and he will fax that approval with a letter stating that if the Short Sale goes through
CW will not pursue any deficiency judgment against you but if it forecloses they will. He will also mail the original letter stating that
CW will not pursue the deficiency judgment and the Title Company will include that letter to the escrow papers for both parties to sign. You need patience if you're doing Short Sale, it took me from 0ctober 2007 to July 2008 before
CW approved the Short Sale.
Good luck and take care.