What SUCCESS look like on a SHORT SALE

Posted on March 9th, 2010 in Short Selling/Buying.

What is the goal of a short sale?

This letter is an example of freedom.. freedom earned by a client who short sold with us. She owned a townhome – paid $315k owed $315k. We listed it for 299,900 then 279.. then 249k.. .we had 1 showing in 5 months!  That’s a challenge!!  How were we going to get her sold.??? I held a sold in a week “hi bidder” home sale auction… 75 signs and alot of hard work later … we had several bidders and bid the home up to 240,ooo. Given that we tracked all our notes and price  cuts… I presented an executive summary of the comps, proof of our long efforts to sell and market the property on over 30 websites.. and that we had to resort to an auction… Given all that .. we got our client SOLD… with NO deficiency.. If you read the letter below.. this is what success reads like. It’ let’s you walk away with NO deficiency judgement.

Upon receipt of the NET PROCEEDS and a COPY OF THE FINAL SETTLEMENT STATEMENT, CitiMortgage, Inc. will give a full release and reconveyance of their loan as agreed and no deficiency judgment will be instituted. **

It is the following letter

WHAT THERE GOAL OF A SHORT SALE LOOKS LIKE

“APPROVAL OD SHORT SALE” LETTER FROM THE LENDER

THIS IS A SHORT SALE FROM AUGUST 2009 WHERE OUR CLIENT OWED $315,000 and was released with NO DEFICIENCY at a SALE PRICE of $240,000.

**”FULL RELEASE AND RECONVEYENCE …

and NO DEFICIENCY JUDGEMENT WILL BE INSTITUTED”

Dear Mortgagors,

CitiMortgage, Inc. has agreed to accept a short payoff  on the above captioned loan with the following conditions:

1.  The closing shall take place on or before August 2..or per diem interest in the amount of  $175.00 will be charged. You must obtain approval from CitiMortgage for any extension beyond August 31, 2009. Per diem interest will have to be absorbed by parties other than CitiMortgage, Inc..

2. CitiMortgage, Inc. net proceeds should not be less than $199,303.15.  Contract price is $240,000.00.

3.   Approved closing costs to be absorbed by CitiMortgage, Inc. including brokers commission ($14,400) are not to exceed $40,696.85. All other closing costs must be absorbed by parties other than CitiMortgage, Inc..

4.   The current owners are to receive (0) zero proceeds from the sale of the above property.  Any and all refunds or credits should be added to the net proceeds(from item #2 above) and remitted to CitiMortgage, Inc. at the time of closing.

5.   Upon receipt of the NET PROCEEDS and a COPY OF THE FINAL SETTLEMENT STATEMENT, CitiMortgage, Inc. will give a full release and reconveyance of their loan as agreed and no deficiency judgment will be instituted. **

6.   All judgments and/or liens must be cleared and settled prior to closing.  Proof of release must be presented at time of closing.

***ANY CHANGES TO THE ABOVE STATED TERMS MUST BE APPROVED BY CitiMortgage, Inc..

On the day of closing please fax a copy of the check along with a HUD-1 Settlement Statement to EFAX:  1-866–

Please forward THE NET PROCEEDS CHECK with THE FINAL HUD-1 SETTLEMENT STATEMENT to: