When you pursue a short sale, you’re making a tough decision that clears the way towards rebuilding your financial future. When you finish the process, you must have the paperwork in hand that proves that you can move forward without your lender coming after you for the rest of your mortgage in the future. Without a deficiency waiver, though, that’s just what might happen.
HOW A DEFICIENCY WAIVER HELPS PROTECT HOMEOWNER CREDIT
MANY PEOPLE FORGET THIS ESSENTIAL DEAL ELEMENT
If you ask people who have completed a short sale on their property — or thought they had — this is one major regret you’ll hear from many of them. If they didn’t get the right advice and didn’t make sure that the lender provided them with a deficiency waiver as part of the deal, they may still be paying years down the road. The amount they may still owe, often sold to collection agencies, can be in the hundreds of thousands of dollars.
PROTECT YOURSELF AND YOUR CREDIT
It may sound unfair to have what looks like a loophole for the lender, but it’s business. The deficiency waiver represents a debt the lender has decided it won’t collect. Some lenders don’t want that to appear on their books. If they don’t issue the document, they can still handle the remaining sum as a debt owed to them. This is an important reason why short sellers must be well-informed and should have short sale assistance from an experienced, skilled short sale negotiator, preferably one who is familiar with lender policies.
YOU MAY NEED MULTIPLE WAIVERS
Deficiency waivers from each lienholder, if there are several, are needed. For example, second mortgages, mechanics liens, HOA liens, and unpaid taxes may require additional waivers for the homeowner to walk away with a fresh start. It’s the experience of a professional short sale negotiator that makes these waivers possible. They understand what motivates each lienholder to agree to waive the deficiency. In some cases, all the negotiator has to do is ask. Don’t forget; short sales usually have many advantages over foreclosures for both the borrower and the lender, which can be leveraged in ensuring the deficiency waiver is issued.
MAKING THE WAIVER MORE ATTRACTIVE TO LENDERS
A home buying title company such as EZ Short Sales has extensive professional experience in the technical aspects of real estate. Combined with the ability to complete the sale without waiting to find a qualified short sale buyer, this is a powerful ally for your deal. Connecting with EZ Short Sales can give you another advantage in your short sale preparation and negotiation: a buyer who can help make the deal happen quickly. Contact us today to get started!