Indymac Short Sale

[indymac fan...]

I finally received my approval letter on my short sale from Indy mac, thanks in part to some of the Indymac contacts that were posted on this sight! They get some attention readers so be careful how you choose your words if you do indeed try those email addresses provided! Everything looks pretty straight forward except for the following makes me hesitant to sign;

"The borrower must sign the attached acknowledgment to all terms specified in this approval and must acknowledge that Indymac bank reserves all deficiency rights as provided by the note, deed of trust and/or security agreement and local and federal laws." A special ACKNOWLEDGMENT is provided for me to sign....

Any one have any advise here. It's a an Oregon loan. I have night mares about the big bad bank sending me notice of payment due on the forgiven debt years from now when I'm no longer broke... It's a first only and FanieMae is the investor.

[Moe Bedard]

Hi indymac fan,


Welcome to the forum and thank you for joining.............

In Oregon the law allows for deficiency judgements...........

Oregon Foreclosure Law

Never assume something is written off unless you have a formal, signed, written, release of lien and/or judgment from the lender specifically stating that no further action to collect this debt will be taken.

Did your realtor receive written notification that they accept the short sale as debt settled in full?

[Moe Bedard]

Here some more info for you on this subject.

Negotiating Deficiency is Key in a Short Sale

Negotiating Deficiency is Key when atempting a short sale:

With a short sale, the lender has three possible ways to handle the deficiency balance, which is the portion of the mortgage debt not covered by the sale of the home.

First, the lender can attempt to collect the deficiency balance from the seller after the property has closed.

Second, the lender may require the seller to sign an unsecured promissory note for the deficiency balance as a condition of agreeing to the short sale. If the new note is for less than the balance of the original debt, the difference would be considered canceled, or forgiven, debt.

Third, the lender may agree to cancel the entire deficiency balance.

You must negotiate for the release of both the property lien and the underlying personal debt secured by the note. If you fail to do this, the lender may not forgive the personal debt and it will become a collection.

It is wise to consult with an Attorney or Real Estate Agent who is familiar with Short Sale negotiation and has significant experience working with lenders. Keep in mind that Attorney’s fees or Realtor fees come out of the lender’s net proceeds, therefore, you should not have to pay out of your own pocket for an Attorney or Realtor to assist you with the transaction.

[indymac fan...]

Hello ***,
Thanks for the reply. IndyMac did not provide me with any sort of letter asside from the rather troubling approval I quoted in my post. I continue to recieve contradicting opinions from every would be attorney and Broker on this issue. I have seen an Indymac letter with the very same letter head stating they do waive all deficiency rights and essentially forgive. We will be responding with a resounding NO to signing the letter I quoted but more importantly requesting they clarify what rights they wish to reserve. The loan is a 100% financed first only so as I understand it even in Oregon they do not have any rights after forclure to seek deficincy as the first holder? This is where I really need help! What can they do? Is this letter an attempt to put me in a more vulnerable position than if they foreclosed on me? I can't get a straight answere to save my life. Some say we are a deficiency state and they can come after me years from now if I have assets... Others say not on a first... Any advice friend?

Gabriel

[Moe Bedard]

Gabriel,

I wish I could answer the questions that you have here, but not being an attorney and not being from Oregon and knowing the ins and outs of the foreclosure laws there..........makes it difficult for me to do so........
Unfortunately for the questions that you have regarding the way the law in your state would translate deficiencies............you would need to consult with an attorney familiar with the foreclosure laws in Oregon...........even if it is just for an hour or two to be clear........