Florida Short Sales Can Result in Deficiency
Short sales help Florida homeowners get out from under a mortgage they can no longer afford, but sometimes a deficiency is inevitable. A deficiency is the difference between the amount owed on the mortgage and the amount of the short sale.
A bank may approve a short sale, but ask the seller to bring money to the closing or sign a promissory note for the deficiency at closing. While a few states have laws preventing a lender to pursue the deficiency in a short sale, most do not. The only real way to prevent the deficiency is to negotiate with the lender and ask them to waive the deficiency.
Negotiating A Deficiency
Alma Korshak has over seven years experience in negotiating short sales. She knows which lenders may be inclined to waive the deficiency or perhaps settle for a smaller amount.
“The majority of the lenders right now are normally waiving the deficiency balance, however, there are some short sale lenders that are a lot stricter than others and they are not willing to waive the deficiency balances,” Alma explains.
“One of those lenders sometimes could be Regions is the top one. Credit Unions can be very tough as well because they’re going to want the majority of their losses paid in form of a promissory note or a big cash contribution.”
When the Lender Will Not Waive the Deficiency
Your best chance for having a deficiency waived is to work with a skilled negotiation team such as Short Sale Facilitators in Casselberry Florida. They are tenacious in their negotiation and in many cases are successful in reducing or eliminating the deficiency.
Sometimes, even the strongest negotiators are unable to get some lenders to waive the deficiency. When that happens, the seller will be responsible for the payment of the short sale deficiency.
“If there is a deficiency balance and we were to get an approval letter that states that they’re not willing to forgive the deficiency what happens then the only thing that could happen is eventually the lender can come back and try to collect on that deficiency.”
There is no magic in a short sale. They require constant communication and tough negotiating. Alma understands that clients want to know if the lender will pursue the short sale deficiency. “Do I know for sure that that’ll happen? Maybe yes and maybe no.”
The Short Sale Approval Letter
The short sale approval letter will detail the specifics regarding the short sale and what the lender approves. If the approval letter does not address the deficiency specifically, it is important to request a written waiver from the lender if they intend to waive the deficiency amount.
Alma and her team at Short Sale Facilitators will not stop negotiating until they have achieved the best possible outcome for their clients.
“But the beauty about a short sale is that when we’re done with the short sale at least the seller knows where they stand. If the lender’s going to waive the deficiency balance or not.”
Call Short Sale Facilitators and schedule an appointment to meet with Alma Korshak in her Casselberry, Florida office. Alma will explain the short sale process and keep you informed of the process every step along the way.
Short Sale Facilitators. The Power of Negotiating.