I just want to run this pass the Short Sale Specialist Network and see if you guys have the same response that I had. Now mine you I do not know all the particulars because it was not my clients. This was a story I ran across in our local newspaper, but in my opinion it was very distrubing. Here is the short version. A homeowner in Virginia Beach, VA purchased a home with his wife for $195,000. Took out a second which brought the principal up to 212,000. 2 years later he loss his job and got a divorce. He put the home on the market for sale via short sale at $185,000 being the market value. I know the area so that sounds about right. He recieved an offer for $180,000. The bank approved the short sale, but per the article, the second would not waive the deficiency judgement and wanted the right to pursue the $28,000 deficiency. Now I dont know if a promissory note was offered or not as the article did not say but I believe this is what the $28,000 claim was. Anyway, his attorney told him not to agree to it and to file bankruptcy. He ended up filing bankruptcy and still losing his home to foreclosure. Double whammy! I believe he was ill-advised by his attorney. The pursuit of defeciency could have probably been waived or negotaited into a affordable promissory note. Either way I dont think bankruptcy was the right call in this situation. Thats why it is important to work with Short Sale Specialist
when needing to avoid foreclosure. What do you think???