You could get foreclosed on by the HOA before the bank does, but this may not alleviate your obligation. State laws vary, and I'm not a lawyer, but the ones I use with my distressed clients advise them not to stop paying the HOA dues. Your HOA is not some blind nameless faceless entity, but your former neighbors. The cost of maintaining the neighborhood amenities is shared by all and when some fail to pay, the others must make up what's missing.
I think whoever is negotiating your short sale needs to fight harder with the bank and with the market. If they recommended you accept an offer which is too low, they didn't do you any favors. Banks are obligated to get the most they can to reduce their losses.
BPO's are not the Gospel and neither are appraisals. If they are out of sync, the question I ask is why? Which one is more accurate based on my findings and what can I do to discredit the other.
A foreclosure carries with it greater consequence than a short sale for most people. If you are this close to getting it approved, either get your agent to get answers and fight for it, with the banks or a better offer from the market, or get an agent who will.
I know it's a headache you want to put behind you, but if you give up too soon the resulting headache will stick around a lot longer than it needs to.... more
The safest rule of thumb to follow is to consider that anyone to whom you owe money, but do not pay, can come after you! I always advise my clients to work with an attorney to make sure your position in a short sale is protected.... more
I have always understood that PMI is there to protect the lender's interest, not the buyers. I don't think the presence of PMI has anything to do with whether or not the mortgage company can come back after the homeowner!... more
I did not read this a as a 'full waiver of the deficiency". There is not enough information here to determine that. I have seen that exact wording before though, once where is it WAS a full waiver and once where it did come back and bite the seller later on down the road. I would definitely ask an attorney on this one!... more
I am a Short Sale Specialist and I have been in this position with many 2nd mortgage companies before. I even had an instance where the 2nd mortgage tried to get ME, the listing agent to pay part of the deficiency!! These companies are desperate to get anything they can and will do almost anything to get it. They are basically Bill Collectors and we all know the kind of reputation and scare tactics used by these people. All of my seller's have been asked to 'ante up' in order to get the written approval. ALL have been bluffs and when I called them on it they say that they will give the written approval anyway. I would stand my ground and tell them you ARE NOT going to pay the $20,000 and you will walk if they still will not give you the written approval.. .Wells will probably roll over.
Lisa Allen, REALTOR
Prudential Georgia Realty