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Thanks for the video. This is a great help. I am currently starting the process with Chase in the Orlando area. I have a buyer for my short term rental single family home. We have the contract signed and the contingency (full release and satisfaction of debt) in place. Now its on to Chase. This is an investment property. I live in Illinois and have hired a Florida attorney that has delt with short sales. I wish I would have seen your presentation prior to hiring the attorney. My questions to them would have included a couple more related items.. The plan is to submit the paperwork, get an apprasial, and come up with a hardship letter. Thanks for the posts on this site.
Thanks Dan…it is a VERY confusing subject to many because of the bad info out there, but in practice, it’s not all that hard. Glad you found some value in this.
Thanks for the video. Cleared up some confusion I had about this topic. However, I was curious to know if there is any difference between what you presented (short sale) vs. a strategic default. Like many others, I find myself in a situation where a short sale doesn’t appear to be an option since there is no financial hardship to demonstrate but yet I’m severely underwater (~140K) in New Jersey (recourse state). The issue is not so much financial as it is the birth of our daughter and the need to sell into a better area for school. Our area is NOT family friendly in any way. It was fine when it was simply my wife and I but our priority in life has now changed. There are several short sales in my community that continue to depress prices further. Contemplating walking at this point…. Curious on your thoughts and if the information presented in video equally applies to a strategic default.
Hi Jay, thanks for stopping by and thanks for the comment.
A strategic default is some new fangled name for the same thing…a foreclosure. If you “strategically default” it means you are just letting the house go back to the bank. Just because someone wrapped it up in a nice moniker doesn’t mean that the outcome is any different.
If you walkaway, strategically default, lose the home to the bank…etc…you are still going o be in a position to receive a deficiency judgment (subject to the laws in your state of course). The bank will take the house back and seek to re-sell it to re-coup their investment and when they don’t, you could be in the position of being on the receiving end of the DJ. Notice I said “could”. You see a strategic default is more like a strategic gamble.
Maybe you will get lucky and not receive the DJ and maybe you won’t get lucky and you will get a DJ>
In any event, why do you sale the SS is not an option? Banks don’t want to own houses. They want money! We have completed short sales on homes where the client has had good credit AND hasn’t missed a single payment. There are a number of variables involved. Since you are contemplating just walking away..err.. I mean strategically defaulting…why not give the SS a shot. What’s your worst case scenario..the bank says no? Then you still could walk. But if you are successful wouldn’t that make life easier.
Even though you are up north, we would be interested in working with you if you’d decide you’d like to give it a try. I’ve quoted the Great One once or twice on this site but it won’t stop me from saying it again.
“You miss 100% of the shots that you don’t take”
hey gentleman i just viewd your video on short sales and deficiency judgements and you guys mentioned a very prominant south florida real estate lawyer that you worked with who was very knowledgable, is there by any chance that you could email me his website and our office info. secondly i heard you say that as investors/agents witch is my understanding that you are, do you guys take on new clients. meaning are you guys realators that could help me with my short sale?
Hey Vinnie..Thanks for stopping by and thanks for the comment. I will email you directly on the information that you requested.
hey thanx barry thanks for the additional info…i replied to your email with some info and documentation as to what the situation is.. if you think its somthing your company can help me with then by all means lets do business
Can you explain the difference between a “Release of Mortgage” Document vs. “Full Reconveyance” Document? I checked country records and only see a Full reconveyance document.
It’s been 1 year since the property has been short sold in California with Bank Of America.
My Short Sale letter from BofA is a little different than the one’s they are issuing now.
Mine stated “This letter confirms Bank of Amercia’s agreement to accept a short payoff on the above referenced loan on the follower terms: Bank of America agree’s to accept $518,00.00 as payment towards the above reference loan. Upon the Bank’s receipt of 518,000, the Bank will release the lien and charge off the remaining debit as a collectable balance. Our recovery department will be in contact with you to make arrangements on this balance. Will report the account to the credit bureaus as “charged off”, and show that remaining owed to Bank of America”
Thanks for your help.
Depending upon the state that you’re in, some states release and satisfy mortgages, other states reconvey deeds of trust after the loans have been paid off. Basically similar in nature and indicate that a loan has been paid off. Check with a local attorney to confirm but you should be good.
As for the letter that you received, whoever negotiated your short sale may have left you hanging…I could go into more detail but you and anyone else who gets these kind sof letters need to contact an attorney BEFORE you accept it. Realtors don’t know how to handle this and are not trained to deal with it..as you are now unfortunately finding out.
Thank you for the quick response. I felt trapped because BofA is impossible to deal with! They would not alter the letter in any way and basically told us to sign or foreclose. We did contact an attorney and he advised going through a short-sale would be much better than going through a foreclosure.
So I could be responsible for the difference in the short-sale?
Hi James..I know it’s tough but I’m glad you got legal advice. Based upon what you signed, I guess they could construe that you are responsible but you need to pull your satisfaction / reconveyance and see how it’s worded and keep a copy handy if anyone ever comes a knocking. If they filed a document saying paid in full..then I think it could make life real easy for you.
I can tell you that the loss mitigation, customer service, foreclosure and post closing departments are all separate and the left hand mos tof the time has no idea what the right is doing..so pull that document and see what actually got filed. You might be pleasantly suprised.
Would you be kind enough to look at it? The wording is completely different than what your video shows, which is why I thought they were 2 different documents.
It states :
“FULL RECONVEYANCE”
“PRLAP INC, as successor by merger with PRLAP INC, duly appointed Trustee under Deed of Trust dated 5-25-07, made by JamesXXXXXXXX… as Trustor, and recorded on 6-14-07 as Instrument 200700XXXXXXXX in Book NA, Page NA of official records in the office of the Country Recorder of XXXXXX County, California, has received from Beneficiary thereunder a written request to reconvey and in accordance with said request and the provision of said Deed of Trust, does hereby reconvey, without warranty, to the person or person legally entitled thereto, the estate now held by it thereunder.”
It looks nothing like the one on your video.
I am so glad I found this site and feel at peace about doing a short-sale vs foreclosure. There is so much bad advice and miss information on many internet sites from people that really have no clue what they are talking about. This site makes sense and you guys make it easy for anyone to understand.
Thanks for the kind words James. We try to explain things as best as we can. This stuff isn’t brain surgery but for some reason, so many of the “professionals” try to make it so. I don’t know why…
I’m not an attorney and you may want to call someone , maybe the one you spoke to before, but it sure looks like a satisfaction. The one question I have is the “without warranty” portion. Here’s an easy clue to determine if this is a normal satisfaction. Check the public records in your area and see how this document is worded in NON-FORECLOSURE sales. If those transactions have the same wording, then you MAY be fine.
Now understand, it will not stop some stupid collection agency that they may have sold the debt (based upon their letter to you) who tries to collect on some perceived shortfall. But a quick warning of DON’T CALL ME should stop that.
Hi Barry,
Thanks for the prompt reply you sent me regarding Satisfaction of Mortgage.
I have one more question, though. What is meant on the approval letter by
“Chase will instruct the Trustee, if applicable, to record a FULL RECONVEYANCE” unless Chase receives contrary written instructions”?
Mike
Full Reconveyance is basically the holygrail. Full reconveyance is the document that the trustee of a property receives when the mortgage (rather the note) on the property is paid in full. The full reconveyance removes the lien from the property. That’s what you want.