Can the Bank Come after you on a Short Sale in Tennessee?

While browsing the website today I noticed that someone had performed a google search for this question and found our website.  Just in case that person is still out there, I wanted to answer the question to the best of my ability.  Yes, banks can and do have the right  “come after people” after a short sale in Tennessee.  Some states don’t allow it but Tennessee does.  But that doesn’t necessarily mean that your lender will come after you.

The trend we are seeing is that 1st mortgages are less likely to pursue a deficiency.  So lets say you owe $100,000 and the bank accepts $70,000.  They have the right to come after you for the difference of $30,000.  Many factors play into whether or not they decide to pursue you.  Our goal at TSSC is to find out the banks lowest acceptable price and then find out if they plan to pursue.  If they say yes, we try to find out what it would take to make them not pursue you.  Usually a little more money ( a higher offer) will get them to leave you alone.

Second mortgages are more likely to want a promissory note or pursue a deficiency at closing.  Many of these seconds are with smaller local lenders and they may be harder to satisfy.  Also second mortgages routinely have to accept embarrasingly low offers of 5 to 10 cents on the dollar.  It’s easy to see whay a bank or credit union would be upset receiving $3,000 instead of the $30,000 they loaned out.  So some may ask for a $27,000 promissory note.  Remember that a note is unsecured debt (like a credit card).  It can be discounted at a later date and settled for pennies on the dollar as well.  It can also be bankrupted, although we don’t recommend it.

Some lenders are easy to work with on this.  Others aren’t.  This is one reason we no longer work with Bank of America short sales.  They refuse to give up the right to pursue their deficiencies.  I doubt they will pursue them because they can’t even get their act together to foreclose until homeowners are 12-18 months behind.  But they can sell these deficiencies to collection agencies that may track you down 3 years from now.

So what should you do?  Well you need to realize that the bank has the same right to pursue you after anything that creates a loss.  This includes a short sale, a court house auction, or a deed in lieu.  So just letting the home foreclose is not the best solution.  A short sale gives us the opportunity to negotiate and at least you will know at closing what to expect.  Just remember the bank really doesn’t want your house back.  They have no choice until an alternative is presented to them.  A short sale offer on the house gives them that alternative.  Most banks are really discounting these homes to get rid of them before they have to foreclose.  So give us a call and lets get started on the solution to your situation.

Happy 4th of July!

We hope everyone takes time to enjoy the 4th of July with family and friends this year.   Take a moment to remember the sacrifice that others have made so we can be free.  It’s something we take for granted everyday.  Thank God we live in a country where we are at liberty to pursue dreams, start businesses, and raise our family, and attend the church of our choice without persecution.  And I hope it stays that way forever.

If you are trying to find freedom this summer from your mortgage and pre-foreclosure situation, you need to give us a call.  If your house is listed with a Realtor, you need to tell them to call us.  Time is too short to waste.  First look at all your options and if a short sale is the way you decide to go, you need to find the best team to get the job done for you.  TSSC is the answer to finding financial freedom from your situation this summer.

Happy 4th of July!

Realtors, Are you Unknowingly Hurting your Clients by Negotiating a Short Sale on your own?

I just spoke with one of the owners of a real estate training school this morning.  I was curious how much training that Realtors get during their 3 weeks in his school.  His answer was not suprising to me at all, it only confirmed what I have suspected all along.  Realtors have to seek additional training in short sales if they want to be proficient in these transactions which are still growing in number every day.

Many Realtors I know have taken the one day seminar which “certifies” them as a short sale expert when they have finished.  Most were left confused and knew just enough to get them in trouble.  If you could outsource shortsales, still make the commission you were expecting to make, and give your clients the best chance of a postive outcome, wouldn’t you do it?  Yes…. never talk to a lender and still make your full commission and maybe a little extra.  From our perspective, we can not understand why more Realtors don’t utilize a third party negotiator in conjuction with an investor offer.  Maybe they are afraid to hand the negotiations over to someone else.  But what if that negotiator has years of experience in short sale negotiations and knows many “tricks of the trade”.  One of the biggest fears in outsourcing is that the person you outsource to won’t be as good as you were at the task.  In reality,  the person we outsource to often becomes even more proficient than we could be due to their focus on that niche.

The worst situations I see are when Realtors have to ask homeowners to sign promissory notes at the closing table.  These situations are avoidable with the right negotiation tactics and should not be accepted.  Our process allows us to raise the offer in order for the bank to forgive these shortfalls.  You owe it to yourself and your client to understand what we do and how we do it.  So in closing, take the time to educate yourself on what we offer and then make a wise informed decision that will benefit all involved.  You just might find that you don’t hate short sales as much as you thought and you can build a successful business focusing on homeowners who need you now more than ever.

Why Try a Short Sale?

Why try a short sale?  If you’re like many homeowners you’ve had about all you can take from your lender.  You may be getting nowhere with a loan modification or just tired of being put on hold.  You may have even just decided to walk away.  A short sale is the best option for a home owner who knows that they can no longer afford the home and are ready to sell.  These homeowners are often upside down (they owe more than the house is worth) or they are just at break even after paying closing costs and fees to the Realtor.

Don’t let this situation cause you to make a decision that you may regret for years.  Bankruptcy may not be your best solution.  Is the house the majority of your debt?  You could probably work out the rest of the debt and we’ll give you a book that will guide you through that.  A deed in lieu is no better than foreclosure and the lender could still hold you responsible for the short fall.  You owe it to yourself to know your options and the consequences of each one.

A short sale handled and negotiated the correct way by an experienced third party working hand in hand with a knowledgeable Realtor is the best solution for many homeowners.  Browse around our website and you will learn why TSSC is East Tennessee’s leader in successful short sale outcomes.

Get the Answers You’ve Been Searching For.

Welcome to the website of TSSC, your solution to your pre-foreclosure situation.  You will find many resources here designed with you in mind.