Some short sellers are astonished to discover that the bank may require a seller contribution on a short sale.
Moreover, if a foreclosure could result in a deficiency judgment, a seller might want to consider a contribution upfront, instead of on the back end, and try to put an end to the madness . . . read more about Short Sale Seller Contribution.
More Articles by Elizabeth Weintraub:
- Understanding the Short Sale Addendum
- The Meaning of an Approved Short Sale
- How to Get Multiple Offers on a Short Sale
©Big Stock Photo
Technorati tag: short sale seller contribution
At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
Comments
Sellers who reach the point at which their lender is asking for a contribution at closing have probably not been properly advised by their Realtor.
Whether or not someone should or shouldn’t contribute funds at closing is purely based on each individual situation. But, if a bank is willing to eat a few hundred thousand dollars, and they’re only asking for a fraction of that, since you have a moral obligation to pay the note, and they’re letting you off the hook for pennies on the dollar, I’d take the deal.
In California, there are no deficiency judgments on purchase money. I received a demand from a bank last week for a seller contribution on a purchase-money short sale. The seller has tapped all their credit cards to try to stay current and has no source of income. This is purely evil behavior on the part of the bank.
this is very well said.seller should also contribute.