So you need the $3,000 to either help you move out or maybe just put a little money in your pocket when exiting your home in a short sale.
So many friendly Texas folks, while understanding yesterday’s post about the new short sale program understood there were some “gotchas”, but they still wanted to know how to make it work. Fair enough…
Here’s what you need to do: Start with the premise that the bank is going to try and “steal” your $3,ooo. You must understand this fact first.
Ok, now that you understand the bank is a thief, what’s next? Second, understand that whatever outstanding bills (such as HOA, water softener, A/C or Heater liens, roof, etc.) are outstanding will need to be negotiated down, paid off or released for you to keep your $3K.
Why? Because as we mentioned yesterday the bank is going to apply YOUR MONEY to your bills. I know it doesn’t seem fair but neither was the crappy loan terms, interest rate and/or yield spread that might have been pulled on you when you took the loan.
Third, realize that if you have extra cash laying around in your bank accounts that the bank MAY give you the $3,000 but they will likely ask you to sign a promissory note for some amount of the deficiency left after the house closes. Ex. Sale price = $100,000. Net to bank after closing costs = $90,000. But you owe $120,000. This leaves a $30,000 deficiency.
If the bank believes you have money they will likely ask you to agree to pay some of this back.
Bottom Line: You need to skillfully negotiate your deal to maximize your chances of putting as much of the $3,000 in your pocket as possible. When all else fails and if you have reason, you might be able to sue your old mortgage broker or lender to get them to cough up some money to get you out of the mess.
If you want a FREE checklist of the 15 things your bank should have done at closing, to see what angles of attack might be aimed at the bank, simply email our office and we’ll send it to you.
– The Bank Slayer
