Keep in mind prom notes are UNSECURED notes, and usually don't have interest. My suggestion would be to start with a cash offer at closing. Even $500 is an attempt. We've had luck offering even less than half of what they wanted in the form of a promissory note.
Maryann Little, VP Mitigation
Many people are not aware that even if a lender approves a short sale (with no promissary note required) there is typically language in the Short Sale Approval Document that allows the lender to seek the deficiency amount at any given time in the future. As such, when your finances improve at some future date, they may seek re-payment of the monies due.
It's unclear whether you are the seller or the buyer. If you are the seller, I would suggest that you utilize the services of a knowledgeable real estate attorney so that you are fully aware of the positive and negative impacts on a short sale.
It is called a Deficiency Judgement.
If there is a 2nd Lien, the problem gets even worse.
If the Bank is asking for a promissory note; it sounds like they are allowing the homeowner to pay the difference over time, instead of filing suit.
This is between the Bank and the Seller, and the Buyer should not be involved, unless they wanted to be, (to hold the deal together.)