for example, lets say the home is worth $400,000 with a first loan of $425,000. It doesnt make sense to sign a promissory note if there is no value to the loan. Also, what type of loan was it?? Purchase money second
You have a few things to think about:
Are both lenders the same or are they different lenders?
Some times as a negotiating tool signing an UNSECURED NOTE is not a bad idea.
You have to look at your clients entire financial situation.
Best of Luck
Legal Assistant - Certified Debt Arbitrator
925 699 5041
No, the credit damage is not the same on a foreclosure and a short sale. They are not as bad for a short sale, but still bad. On a recent call with a Wachovia VP, he stated that they'll loan again 2 years after a short sale as opposed to 5+ years on a foreclosure.
As an agent, you want to be cautious though when advising your clients about tax and credit score ramifications. You are not an accountant nor are you a credit counselor. You sell homes.
Good luck Fran!
The other thing that is interesting is with the hafa program coming out 4/5/10, how will the seconds postion effect that program?
First Weber Group
Certified Distressed Property Expert