Language in letter of approval for short sale

[Martinique]

I live in California, a non-recourse state.
Do I have to worry about specific language in a short sale letter of approval ? I have a loan and a HELOC, both purchase money loans. Is specific language needed to waive deficiencies?
Should i have an attorney review the letter ?
I was given a verbal OK but I am concerned about what the letter will say. Thanks for any advice, opinions, recommendations. This whole process makes me nervous. I don't want to make any mistakes.

[Evan Bedard]

I live in California, a non-recourse state.
Do I have to worry about specific language in a short sale letter of approval ? I have a loan and a HELOC, both purchase money loans. Is specific language needed to waive deficiencies?
Should i have an attorney review the letter ?
I was given a verbal OK but I am concerned about what the letter will say. Thanks for any advice, opinions, recommendations. This whole process makes me nervous. I don't want to make any mistakes.

Hello Martinique,

Since you are in CA and both mortgages are purchase money loans the lender will not be able to pursue you for a deficiency judgement after the short sale is finalized..

[Martinique]

Thanks, Evan. I can't believe how quickly I got this approval. No argument, no problem at all. Also got the HAFA $3000.

[Evan Bedard]

Thanks, Evan. I can't believe how quickly I got this approval. No argument, no problem at all. Also got the HAFA $3000.

Wow that is great news! If it is a HAFA Short Sale there would be no deficiency as a HAFA Short Sale requires the investor to waive all rights to seek a deficiency judgment and may not require the borrower to sign a promissory note for the deficiency.

Here are some threads with other members who have gone through the HAFA process:

HAFA Short sale success

Best way to proceed...? Short Sale? HAFA? Drain 401k?

Successful HAFA Short Sale w/GMAC

Another (pending) HAFA short sale success!

Any experience with EMC/Chase HAFA short sale success??

Has anyone actually gotten HAFA payment?

[Martinique]

Thanks, Evan.
It's been 4.5 weeks before initial SS letter to bank and receipt of approval letter. With the initial application, I had sent an offer from a buyer (above listing price). BPO was done one week after initial letter.
We have the house inspection next week. I hope everything is OK and the buyer does not change his mind. I won't relax until we close escrow later this month.

[Evan Bedard]

Thanks, Evan.
It's been 4.5 weeks before initial SS letter to bank and receipt of approval letter. With the initial application, I had sent an offer from a buyer (above listing price). BPO was done one week after initial letter.
We have the house inspection next week. I hope everything is OK and the buyer does not change his mind. I won't relax until we close escrow later this month.

Just make sure the agent keeps in persistent contact with the buyer so they do not get wary and try to bail. Many buyers are well aware that sometimes short sales do not go through so you want to keep their minds at ease while the process is finalized..

[Martinique]

Evan, the buyers will be coming with their inspector next week. They have 7 days to remove their contingency. I hope they don't find anything wrong with the house.

[megganinMI]

Evan, the buyers will be coming with their inspector next week. They have 7 days to remove their contingency. I hope they don't find anything wrong with the house.

Just to ease your mind, we are in the process of a short sale. Our buyer has hung on since January. Our realtor gives our buyer's realtor regular updates, just like Evan suggested. We also just had the inspection and the inspector was a little ridiculous. There was 12 pages of "repairs" that needed to be done according to the inspector. The buyer hasn't asked for any money toward repairs and we are just waiting on the appraisal to come though.

Hopefully everything works out for you!

[Martinique]

Thanks, Megganin
I really hope they don't find too many things to be fixed/repaired. I know sometimes inspectors go overboard. The purchase contract says "as is". I wonder what happens if the buyer can request repairs. I am not aware of anything wrong in the house but who knows what the inspector can find ? I'll feel better next week when we have the report. This is a "cash" offer, so I don't think an appraisal is required.

[Evan Bedard]

Thanks, Megganin
I really hope they don't find too many things to be fixed/repaired. I know sometimes inspectors go overboard. The purchase contract says "as is". I wonder what happens if the buyer can request repairs. I am not aware of anything wrong in the house but who knows what the inspector can find ? I'll feel better next week when we have the report. This is a "cash" offer, so I don't think an appraisal is required.

The purchase contract states the home will be sold "as is" almost the same as a foreclosure..

Here are some tips to increase your chances that the bank will pay for repairs on a short sale:

• First, make sure the repair is serious. Don't ask the bank to repair nickel-and-dime items.
• Present a case as to why you didn't ask for the repair in the initial offer.
• Obtain at least 3 bids from recognized professionals and submit with your request.
• Realize that if the bank approves the repair, it will choose the lowest bid.
• Request an extension to close the short sale if the repairs are to be made prior to closing.
• Present your case, an executed addendum and the bids to the bank.
• Have a plan B in case the bank rejects the repairs.

http://homebuying.about.com/od/short...Short-Sale.htm

[TomEason]

Thanks, Megganin
I really hope they don't find too many things to be fixed/repaired. I know sometimes inspectors go overboard. The purchase contract says "as is". I wonder what happens if the buyer can request repairs. I am not aware of anything wrong in the house but who knows what the inspector can find ? I'll feel better next week when we have the report. This is a "cash" offer, so I don't think an appraisal is required.

Martinique

Why not just ask your RE agent to explain the contract you've already signed, LOL. This type of question should have been handled during your review of that purchase-sale contract.

Since your RE agent is earning a commission off this deal, it's his/her responsibility to go over this with you until you understand it.