Deficiency Judgement & Funds

Here's the response I rec'd from my colleague re: ss. The ck is due Fri
Shouldn't I get something in writing to confirm the agreement prior to sending the funds?

"The pursuit of a deficiency notice was not discussed, however, that is really no concern of mine. They will not submit any terms in writing until they receive the funds. As a safety precaution, put the loan number and the words "settlement/ paid in full" if you prefer include w/o pursuit of deficiency judgement."

Comments(4)

  • active_re_investor22nd June, 2004

    Learntherules,

    What side of this transaction are you on?

    You can put what you want on the check. Not sure that cashing the check will make it completely binding.

    John
    [addsig]

  • learntherules22nd June, 2004

    buy side...My colleague & I negotiated the short. I'm using common sense here..this is my 1st short & it's not over, still have to work w/1st mtg co. If they agree to a ss shouldn't there be something from the lender saying send $$ to A for settlement...? It's Citifinancial if that helps

  • bgrossnickle22nd June, 2004

    the lender will send an approval letter to either the buyer, realtor, settlement company that usually states the date good through, the buyers name, the net to bank amount, the other costs on the submitted settlement statement, the person and place to send the funds.

    You need to get a copy of this letter. and send your funds to the title company.

    The approval letter will sometimes say paid in full, other times it will not. As part of your negotiations, you can insist that it is paid in full and it must state that in the letter.

    Brenda

  • learntherules22nd June, 2004

    Thank you so much for the info. My colleague isn't really providing much follow up info (very busy w/day job), but my gut was telling me that I should have SOMETHING in writing to confirm the conversation stating that they will accept $3400 offer (orig was $24k).

    I will politely let my colleague know that I need a copy of X (what you said) before giving my half of the $. Anything else I should know as I proceed? Thanks again!!!!

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