What Northern Virginia Short Sale Sellers Need to Know about Promissory Notes
Northern Virginia short sale sellers are not always given a "get out of jail free" card when it comes to gaining short sale approval from their mortgage holders. More frequently, mortgage holders are asking for a certain amount of money to repaid at settlement, in the form of a cash contribution, or through a a promissory note (signed agreement to repay through pre-determined installments).
The amount is a portion of the remaining balance of the loan, not satisfied by the proceeds of the home sale. How the mortgage holder determines the amount they are asking for is unknown. When the mortgage holder asks a short sale seller for a cash contribution, or a promissory note, the following almost always applies:
CASH CONTRIBUTIONS OR PROMISSORY NOTES CAN BE NEGOTIATED DOWN!
Because I have the experience of closing many short sales, I know how to deal with mortgage holders. I also know that when it comes to cash contributions or promissory notes, the mortgage holders always ask for more than they expect to get. It's rule number one of negotiations.
I advise my Nothern Virginia short sale sellers to always counter the figure that the mortgage holder is requesting. What's the worst that can happen? That's right! They might say NO. In that case, you're in exactly the same position you were in to begin with.
Experience counts in short sales. In the cash of a cash contribution or promissory note, the experience of your agent will directly affect your wallet. Choose wisely.
Chris Ann Cleland, Associate Broker- Licensed in Virginia, GRI, SFR, Northern Virginia Short Sale Specialist. Affiliated with Long & Foster, 7526 Limestone Drive, Gainesville, VA 20155. To contact Chris Ann, call 703-402-0037 or email chrisann@LNF.com. Or you can visit her website: www.nvarealestate.net.
Header is a combination of photos from the Bristow, Gainesville & Haymarket areas, taken by Chris Ann Cleland.
Chris Ann-this is the type of information that experienced short sale agents know and understand how to handle without turning to third party resources.
Chris Ann, this is an EXCELLENT negotiating tip in this area...
Cindy: It's amazing how much commission agents are willing to give away to not have to be bothered with these "minor" details.
Gary: I'm happy to report that I saved a seller $10,000 in a promissory note negotiation recently.
Sometimes you can negotiate those promissory notes right out of the transaction, too. However, I always tell my buyers to get legal advice when or if we get to that stage. If there's anything unusual at all in the approval letter, I send them straight to a lawyer.
Elizabeth: Lawyers are always wonderful to look over anything that comes back from the bank. I suggest that my short sale sellers establish a relationship with a lawyer early on so they can get through quickly when the letter comes.
Hi Chris Ann-This info is very clear and understandable so that the consumer know what is going on. Great job. <SMILE>
Sharon: Thanks. I know short sales are about as exciting as watching grass grow. But the information is needed in this market.