Be sure to request something from the lender that will absolve you from future deficiency claims. Under California Statute this is currently illegal, but I know lenders and their legal teams will devise a work around.
Over 1 Billion Sold
As long as you have a qualifying hardship and the bank approves the short sale, you are protected by law in the State of California, from having to contribute any of your savings. Unfortunately, there are some lenders out there who will not approve a short sale if you have "substantial" savings. This was defined to me by one lender as "more than three times the monthly payment". On the other hand, I have had short sale approvals issued for sellers with significantly more savings than that. The lender's rules and parameters for approving a short sale seem to be a moving target. Make sure your agent is in constant communication with the lender and keeps you advised of the developments in your case. Dare to Dream.
Shel-lee Davis, QSCÂ®
Certified Distressed Property Expert â€“ CDPEÂ®
Short Sale & Foreclosure Resource â€“ SFRÂ®
Certified HAFA Specialist â€“ CHSÂ®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
HAFA short sale does not allow for any money coming from the short seller and you should receive $3000 for relocation assistance. I've completed some HAFA short sales for my clients and they were happy.
The traditional short sale does not necessarily mean that they will require what we call a "seller contribution" either. Feel free to contact me with any questions. Good luck.
Sara Mehrpouyan CDPE
Specializing in Short sale & Foreclosure
Dre License #01712757
Please refer to the following:
"CA Senate Bill 458 Now Prohibits 1st/2nd+ Deficiency Judgments*"
The law above prohibits the lender from asking/requiring the SELLER to provide ANY money towards the Short Sale deficiency in order for the Lender to approve the Short Sale - period. This includes if you have a 2nd, 3rd + or a cashed out equity line. See page 2 of http://docs.Steven-Anthony.com/CASenateBill458.pdf and the summary table listed under â€œ*12/09/11 Clarification Update:â€ at the bottom of the blog.
Review the following post if you are also concerned about your retirement savings:
http://=www.trulia.com%2Fvoices%2FHome_Selling%2FCan_my_lender_grab target="_blank" rel="nofollow">http://www.trulia.com/voices/Home_Selling/Can_my_lender_grab
I have closed 100% of the short sales I have listed. This is rare. On average agents are closing about 40% of the short sales they list.
Shoot me an email directly if you want to talk about this some more, I don't look back on this same Trulia thread for answers posted after mine.
Realtor Since 1996
Main Street Realtors
It is all negotiable depending on your financial status, assets, hardship and many other factors. It is most likely that they will not take anything, however, they may ask for you to pay for some of the deficit. Again, it is all negotiable.
I have worked with clients on short sales where the banks wanted them to kick in funds to close, and they said No...and the bank eventually said ok.
Hopefully you have someone that knows how to negotiate with the banks doing your short sale.
All the best,
Kat Becker, Realtor
Prudential California Realty
Short Sale Specialist
Keller Williams Realty