If the note is the option taken, this can possibly relieved by bankruptcy, according to an attorney I work with.
Yes they can and I do not understand it, however, I have had the MI request a 40,000 note that effectively stipped the sale after the bank approved. I also had an MI at the 12th hour...I mean that the buyer is at the closing table and the MI sent a new HUD DEMANDING that each real estate company involved...buyer and seller companies, give up $1,000 each of the commission or they would not close. It felf like the "Old West" being held up at the closing table.
I do not like MI companies, as I am sure you could tell.
Most recently, the bank asked for either $3000 cash or a $10,000 promisarry note with no interest. The seller said "No," my buyer said she was not going to be responsible for the seller and that would be a deal breaker. The bank dropped its request and we closed.
Some other interesting recent trends, beside the seller contribution, banks no longer paying any association fees, banks not paying any attorney fees. It is not getting any easier.
Hope you have better luck!
Andrew and Elena Ollick
Latest Post: Foreclosure Halt creates Problems http://www.andrewollick.com/realestateblog
It's all in the hands of good short sale negotiator upon your side.
There are lots of people offering short sales for low price. Who cares about the price if the bank agrees to pay the S.Sale negotiator let them go and problem resolved.
In my cases negotiator get approved to collect in between 1500.00 dls to 3500.00 dls but they work for your seller.
And this is going on with 4 big bad lenders..talking BofA, JP Morgan, WFargo, GMac, Pnc, Hsbc ...you name it.
No PN at all, no deficiency at all. Maybe 1099. But see IRS form 982
RE/MAX Advance Realty