Short Sale Approval Language – overview – New Hampshire Massachusetts

We are liable to get 4-8 short sale approvals in a week and we thought it would be of interest to cover specific language you want to see on your approval and what you don’t want to see on your approval.

This is the type of language we DO want to see:

– FULL SATISFACTION OF DEBT with LIEN RELEASE
– LENDER AGREES NOT TO PURSUE DEFICIENCY BALANCE
– WE AGREE TO THIS AMOUNT AS PAYMENT IN FULL
– “Execute a release/satisfaction and a discharge of the Deed of Trust/Mortgage” – with – “…Agrees to waive the remaining balance due on the referenced loan and release the Borrower (s) from further obligation.”
– Waive all rights to pursue for further judgment or deficiencies, costs, fees, interest or expenses in association with the referenced loan.

This is the type of language we DO NOT want to see:
– THE NOTE WILL NOT BE RELEASED NOR WILL THE NOTE BE ENDORSED “PAID”
– NOTE HAS NOT BEEN FULLY PAID
– ANY REMAINING OBLIGATIONS ARE FULLY DUE AND PAYABLE

The two items you want to search for in any approval letter are 1) the debt is addressed as being released or paid in FULL – If the debt is being accepted as payment in full, then there is no deficiency to pursue in court later.  2) you want to make sure the lien is released.  This is sort of a given if you are getting an ok to sell, but any approval letter should in some manner address these two items, and this language is not always easy to find.

Tags: , , , , ,

Leave a Comment

css.php