Full Satisfaction of Loan versus a Lien Release Only
Understanding the outcome on a short sale is vital not only to the Seller but to the Realtor. Below I explain the different types of short sale approvals.
There are two different types of Short Sale Approvals:
- Full Satisfaction of Loan
- Lien Release Only
A Full Satisfaction of Loan means that you will not owe any more money on this loan after your buyer pays the short sale amount of $90,000. It also means that the lender will not pursue you for a deficiency judgment on the remaining $60,000. A Lien Release Only means that the lender is releasing the lien on the house for a partial payment ($90,000) just so you can sell the property. However, you are still liable for the difference and the bank could pursue you for the deficiency of the $60,000. I suggest reviewing your Short Sale Approval Letter thoroughly and really understand what you are reading. This is what Sell Fast Realty does for you; however, many Agents don’t explain the details to you and by the time you realize that your letter stated a “lien release only,” you are sitting at the closing table.
What happens if the Lender will only allow a “Lien Release Only” for my Short Sale?
Should the short sale approval letter from your lender be a lien release only then you will have to determine which is better: 1) let the house go to foreclosure sale and possibly owe even more later because market values are still dropping and your deficiency could be even greater, or 2) sell the house now with a lien release only. I have represented some sellers who had to make this decision. I have yet to see a seller choose to let their house go to foreclosure sale. If you receive a lien release only, the lender has the right to choose whether they just want to give you a 1099-c form or a deficiency judgment. Again, it is crucial that you thoroughly review and understand your Short Sale Approval Letter.
Can you guarantee a Full Satisfaction on my short sale?
No, but no one can until they receive and review the letter from your lender. There are too many variables such as type of loan, number of loans, hardship, etc. I have had a few lenders request money from the sellers either by a promissory note or by bringing cash to the closing. They may request either of these options or a combination of both. If a seller is in agreement, then the lender will almost always negotiate that deficiency even lower if the seller is willing to contribute by a promissory note or by bringing cash to the closing. If the lender won’t approve the short sale without a seller contribution, your Sell Fast Realty short sale experts negotiate that amount down as low as possible. For example, a Promissory Note would be paid by the seller to the lender at 0% interest for 15 to 30 years at a drastically reduced amount. The highest promissory note amount that any of my sellers have received was $25,000, 0% interest, paid at $70 per month until paid in full.
TWO THINGS A LENDER CAN DO TO THE SELLER – THEY CAN NEVER DO BOTH!
1. Provide them with a Deficiency Judgment
2. Provide them with a 1099
What’s the next step for me?
Take Action Now by calling us at 407-888-3433 or call the Sell Fast Realty Agent who provided you with this Special Report. You can also go online at www.SellFastRealty.com or www.FreeFactsAboutForeclosure.com and fill out the contact information. Please be sure to fill out the form completely for a quicker response. We will contact you personally within 24 hours to tell you how our expert short sale team can relieve your stress….. Our #1 Focus is YOU! I am honored that I can educate you with the true facts about foreclosure. I am sure you have some more questions after reading this Special Report and we look forward to discussing them with you on a personal and confidential call with you.
Kimberlee Frank, Broker
Kimberlee Frank Broker Short Sale Expert
Kimberlee Frank is known as “The Real Estate Junkie,” for her unique ability to find ways to creatively help buyers and sellers no matter which direction the real estate market is heading. Kimberlee had already worked as a legal administrator for an Attorney, Builder and Broker for 18 years when she began her Real Estate career in 1998. She dotted the i’s and crossed the t’s on hundreds of real estate transactions and thousands of documents, making her an expert in real estate documentation. Kimberlee’s success began in Fenton, Michigan. She specialized in selling, purchasing, renovating, retailing and lease optioning single-family homes. She has helped many sellers get rid of their “headaches” and helped many buyers find their dream homes!
Since 2003, she has specialized in foreclosures and short sales. After realizing how many families were being forced out of their homes due to financial difficulties, Kimberlee had a heartfelt obligation to use her experience to help those families. She has mitigated and closed over 500 short sales with the mortgage companies, saving Sellers from going into foreclosure. In 2006, Kimberlee and her family moved to Florida. She lives in Oviedo and her Sell Fast Realty Office is in Winter Springs, serving residential and commercial sellers and buyers in multiple counties in Central and Southern Florida.
Kimberlee is also a Trainer and Mentor and has created several different “How To” systems on real estate. Her unique strategies continue to educate real estate professionals across the country. If you have a proven system to help others out of hardship, why wouldn’t you duplicate it and share it with as many people as you can? Kimberlee continues to work with this philosophy!
Kimberlee Frank has been featured on ABC, NBC, FOX, CBS as well as Wall Street Journal, Newsweek, USA Today and numerous other publications. She is the bestselling author of “Big Ideas for Your Business” (Advantage Media 2009). She was also selected as the #1 Short Sale Expert by America’s Premiers Experts.
Please contact Kimberlee at her office at 407-888-3433 to schedule a Free Facts About Foreclosure Seminar. She has numerous testimonials from sellers, buyers and other real estate professionals who are familiar with her giving heart. Whether it is 1 person in need or 1,000…..Kimberlee will educate them on real estate and give them a solution with a peace of mind!
Are you unsure what to do with your house? Do you need to educate yourself about your options. Click the following link Free Facts About Foreclosure for more information.
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