Often times people call us to ask, do we have to pay the balance that our house didn't sale for. We can't answer that in most cases and we always so, there is that possibility. I always tell our clients that they should expect to pay the deficiency balance, however, we work hard to avoid that from happening.
Before you start a ShortSale, 2ShortSaleGuys has a packet that all Seller's has to fill out prior to us putting their home on the market. This packet outlines the homeowners hardship, their financial status, and their current assets. This packet is crucial to the approval or denial of a ShortSale as we saw last week.
We had a home in North Georgia that the homeowners clearly qualified for a ShortSale. Their hardship was one homeowner retired and the wife who has worked was laid off to the bad economy. Due to the retirement and the layoff, they couldn't continue paying the mortgage without taking reserves from the retirement.
We listed the home and got an offer on it within 30 days. We began processing the ShortSale and after quite some time we got an approval letter with the bank asking for the seller to bring $46,000 to closing or to sign a promissory note for $766 per month for 60 months in order to pay the deficiency. The banks position on this was that the financials that were submitted, showed that there was a $1650 surplus in income after all monthly debts were paid. We already knew this wasn't the case, so we disputed the financials to show that they obviously were not working from the same set of facts. After a second review the bank approved the ShortSale WITHOUT deficiency balance to be paid or promissory note to be signed.
If you or anyone that you know is struggling to pay their mortgage, please don't delay any long, 2ShortSaleGuys would love to talk confidentially with them and let them know their options. We specialize in this and do this everyday and see or have seen just about every situation that can occur. We are help to help.
For more information, please visit our website at www.2shortsaleguys.com or you may call us at 678-279-5977
Nakia Brooks and Bill Bythewood are licensed Real Estate Salespersons with the State of Georgia and their license is currently held with Keller Williams Realty – Lanier Partners (678) 425-1988
