PNC 2nd Mortgage Deficiency Agreement

[perkfern]

We have a $70,000 2nd mortgage with PNC (was National City), and are in the process of working a short sale through the system. PNC is trying to make us sign a deficiency agreement and will not process our paperwork, nor assign a negotiator, until we sign the agreement. We are kind of resigned to signing the agreement as it sounds like this is their standard corporate practice. Wondering if others have had experience signing this form, but still having success in getting PNC to both release the lien and waive the right to pursue a deficiency judgment. If so, what percentage of the loan did you have to settle on? Finally, what experience have others had in negotiating with a collections agency if full settlement could not be reached with PNC? Thanks much for the thoughts.

[Daisy Cutter]

heres a link with some comments on it from real estate agents.
PNC Bank - Short Sale Superstars

They make everybody sign this but if you are non recourse you are not liable. Do you know who your investor is?

[perkfern]

We are in a recourse state. Don't know who investor is.

[nal67]

Signing the initial agreement letter regarding deficiency does not lock you in to accepting it. We signed it as we were given no choice. Then we went through several rounds of negotiations before finally getting PNC (Etrade investor) to release us from the deficiency for a 35% payoff. They had originally said 40% to release the lien and 60% to release deficiency. It took us a while and getting a letter from a BK attorney as well as missing payments but they finally agreed.

I think we might have been able to get it for less but 1. Etrade is a tough investor. 2. Our loan balance was $350K on a non-purchase money recourse second and 3. Our credit was otherwise spotless.