You could hardly recommend that any homeowner accept such terms, since there is no chance of a def. judgment in your state. For the Homeowner to voluntarily sign a prommissory note is foolish, period. The only 2 ways to get rid of that are to pay it, or file a Bk… Hence their position has been compromised from their original position, with protection under state law from the def. judgment.
You may want to run that past an Atty in your state, to verify the legal stance on offering such a transaction to a homeowner. It is probably legal, since the homeowner is agreeing to do so of their own free will, but I would want to know that for sure…
Not every deal IS a deal, and this proposal to a homeowner, is NOT a DEAL for them.
Posted by Glen Kilgore on November 13, 2006 at 23:53:05:
My company successfully negotiates 4-5 Short Sales per month, and have recently experienced second lien holders requiring clients to sign a document and agree to pay any deficiency upon an approved Short Sale. Being in a non-deficiency state (Oregon), are any of you experiencing this and do you have any comments how to get around this?
Your comments would be greatly appreciated, thank you.
Posted by Bill H on November 15, 2006 at 12:41:38:
I agree with JT-In and ask the question.
You posted…second lien holders requiring clients to sign a document and agree to pay any deficiency upon an approved Short Sale…
In order for a short sale to go through the junior lienholders have to approve the conditions. Now if they approve…how can they hold your resposible for any shortages that exist as a result of their approval?
Looks like a scare tactic to me and possibly a clear violation of state statutes.
Why not get a copy of the document and send it to your attorney general and ask his/her opinion.