Short Sale Approved - question regarding verbage

[unhappy with CW]

Hi, we have had our short sale approved by Countrywide. We had a 1st and 2nd. We had refinanced our 2nd. They said our approval letter will come in 4-10 days. My question is what verbage or wording do I look for to see if they will be putting a "deficiency judgement" on our credit? Should I take the letter to a lawyer to have them look it over? Would we be able to request that they put it in writing that they will not put a deficiency judgement on our credit? I am just hoping we can walk away with just a short sale on our credit and just start over. I hope we wont owe any money on the 2nd. How do I know for sure? Can they come after us years later if it is not in writing?

[faith]

Originally Posted by unhappy with CW

Hi, we have had our short sale approved by Countrywide. We had a 1st and 2nd. We had refinanced our 2nd. They said our approval letter will come in 4-10 days. My question is what verbage or wording do I look for to see if they will be putting a "deficiency judgement" on our credit? Should I take the letter to a lawyer to have them look it over? Would we be able to request that they put it in writing that they will not put a deficiency judgement on our credit? I am just hoping we can walk away with just a short sale on our credit and just start over. I hope we wont owe any money on the 2nd. How do I know for sure? Can they come after us years later if it is not in writing?

Hello and welcome to this forum,
Is is better if CW owns both the 1st and 2nd mortgage. If you and your agent have negotiated with the negotiator that they will put in writing that they will not pursue a deficiency judgment they will put that in writing. The letter will states that CW, its investor and insurer will not pursue any deficiency judgement against you if the Short Sale goes through. It will also says that if it doesnt goes through and they foreclose the house they will.The letter will say that they will pay 5% commission to the real estate agent, the approved Short Sale is for particular buyer only, how much is the buyer's closing cost. There should be no closing costs or fees to you, they give you a date when to sign the escrow.

Actually CW is better to deal with before, but now that it is owned by BA it's too difficult. As far as I know BA does not forgive any deficiency judgment. The anti deficiency judgment law in CA called CA Section 580b is for purchase money mortgage only and no refinancing involved. You should have gotten the letter by fax or email and also by mail the day your negotiator said that they have approved the Short Sale. You don't have to sign the escrow if it doesn't say that they will not pursue any deficiency judgment against you. You can also negotiate the 2nd mortgage by offering to pay 5% to 10% of the balance owed, payable in 10 or 30 years and no interest. YOu also need to tell them that since you are negotiating the 2nd mortgage that they have to put in writing that that they will not pursue any deficiency judgement against you either on the 2nd mortgage.

Dealing with Short Sale is a long and frustrating process. But you have to be bold, persistence, and patient. Do not rely too much on your agent but cooperate with him. If you tell your negotiator by email or by phone or letter that you will only sign the escrow if CW/BA put in writing that they will not pursue any deficiency judgment. You have to prepare yourself, the buyer might back out due to long process, I have 7 buyers that backed out due to long process. I didn't care about them backing out as long as my agent kept bringing offers from prospective buyers. What I care is making sure that CW will give me a proof in writing through fax, email and by mail that they will not pursue any deficiency judgment against me and I did not stop or sign the escrow until I got what I wanted. Thank God I did I did what I did because I needed it as a proof to the credit bureaus that CW has forgiven the balance owed.

This site has a lot of information about Short sale. Thank God for Moe for having this forum for us. Please click the link below.

http://www.loansafe.org/forum/short-sale-outpost/

God bless you and take care.fficeffice" />>>

[Nathan Fransen Esq.]

unhappy with CW,
I strongly suggest you have your paperwork reviewed by an attorney. In many cases, a homeowner is better off with a foreclosure than a short sale. As an example, if both of your liens our with CW then you may in fact have more protection than you would otherwise. A 1 hour consultation should be well worth the cost in your case.

Best Regards,