What is the best way to ask the lender not to pursue a deficiency judgement? A 1099 to the IRS for income from a discaharge of debt is okay because the seller can show insolvency. But how do we protect the seller down the road from being chased by the lender(s)for the defieciency?

Gaby Martinez
(804) 514-5698
Long & Foster
Metro-Richmond, VA

Oh, you can ask, but depending on the lenders guidelines it may not happen. HSBC is the worse. Except CA, they will pursue a Deficiency Judgement no matter what. I have no idea why they even bother doing a appraisal or anything else. They should approve the short sale almost instantly, due to they will pursue and almost full Deficiency Judgement.

Speak the the negotiator about your seller going bankrupt on the Deficiency Judgement anyway, so why pursue. If the sellers income or lack there of does not justify any payment what so ever, let that lender know that the seller will have no choice but to bankrupt the note.

I always say to the lender that one loan has already gone bad on thier books, why make another one go bad on thier books. I find that most lenders will hear what you have to say. Tell the lender to review the workout solutions sheet and see if they can make the Deficiency Judgement payments.

If the seller has the money or income to pay it, you will probably not get them out of it.

Best of luck!

Frank

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Frank Wible
REMAX ALL PROS
Turnersville, NJ 08012
(856) 228-2990
http://www.ShortSaleNJ.com/