Short Sale Seller Does the "Right" Thing
Today I got a call from a short sale seller. He already listed his house with another Realtor, but had read my blog and wanted to tell me about his scenario. I think he wanted an “ear” to listen to his story, and give him some reassurances. I was happy to oblige. The gentleman had done a cash-out refinance on his house several months earlier- receiving about $15,000 back from the transaction. Since then, his fortunes had plummeted, his roommate had moved out, and he could no longer afford his mortgage payments. His mortgage was backed by FHA, and he told me his lender had given him an acceptable price at which the property could sell. He got lucky, and now has an offer. His short sale package is at the bank awaiting approval. His fears were that he had taken out the $15,000 cash from the refinance, and that based on that, his short sale would not be approved. He said his file was in line for review, and he wanted to “do the right” thing and write a letter stating that he would pay back the extra $15,000 in the form of a promissory note, as he has no savings. He asked me if I thought that would help his case. Sure, perhaps the lender would approve his short sale without a promissory note, or perhaps they would reject the offer, or maybe they would ask for a lump sum payment. But what he wanted to do, to make things right with his conscience and his personal code of conduct, was to pay back that money. And that’s what he is doing.
