This post is a follow up to my recent one (which you can view here) regarding a short sale with active military personnel. Another military couple in a new transaction were forced to sell their home due to NFCU’s (Navy Federal Credit Union) refusal to help them keep their home. NFCU then forced them to accept a Promissory Note when selling their home.
ING Bank, who held the first loan, did not require any money from the seller–after I demanded that the seller would provide no contribution. This references the new California Law, SB 458, which allows the lender to collect for closing costs to the transaction only from the seller. However, this is still a gray area and only an agent who has the necessary experience to negotiate with banks, like myself, is obviously worth more than his weight in gold to anyone who may need to sell (paticulary those with assets to protect). Those agents experienced enough in this area will make sure that the seller or buyer will not be required to make any contributions.
The buyer, who was also being forced to contribute in the same transaction to the second loan with Chase, was also permitted to not contribute because of my negotiating ability. Even the buyer’s agent, having seen my emails to the lien holder, confided that he couldn’t believe how much I was able to do on behalf of the buyer.
The commission was reduced drastically as a result of my negotiations, but more importantly, the banks were able to save money by me negotiation an above-fair market price on the property. My hope is that more people will realize that I do my utmost to keep buyers’ and sellers’ interests (and assets!) above my own–and if they believe that, that they spread the word that I strive to be the best of the best.
This new short sale with NFCU had a requirement: that to be considered for the short sale, the seller would be required to take back a promissory note (which in this case was $30K after the seller took out over $80K cash when the market was booming). A seller, in this sort of case, by letting their property go to foreclosure, may create a battle for a settlement on that second loan of over $80K, due to there being no equity in the second loan and the first loan being the foreclosing entity. In cases such as these, a short sale becomes the best alternative to avoiding hiring an attorney to settle this.
On this transaction, this promissory note was approved prior to the passing of SB 458 (which allows no contributions from the seller to the loan that would pay it down, reflecting a deficiency judgment). My persistent communication with this lien holder resulted in a complete forgiveness of the total debt–saving the seller $30K!
Without a properly experienced agent working in the best interests of the seller and buyer, this would have spelled disaster. Even with working with some of the more experienced agents out there.
For the Best of the Best to represent you–whether selling or buying–call me at (619) 890-3648. Thank you for reading!