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Possible Outcomes If your Short Sale Approved

If the short sale is approved, explain the following possible outcomes to the seller:

– All liens will be released, in full satisfaction of mortgage with no conditions.
– Full satisfaction of mortgage with a small or large amount of contribution from the seller.
– Full satisfaction of mortgage with an unsecured promissory note executed between seller and lender, with seller’s cash contribution at closing.
– Full satisfaction of mortgage with an unsecured promissory note executed between seller and lender, without cash contribution from any party at closing.
– Release of lien with mortgage reporting of less than full pay off.
– Release of lien with an unsecured promissory note, with payment less than full reported
– Release of lien with default judgment to be paid over time

If the homeowner’s loan modification has been disapproved, find out why. The same reasons will help you in your short sale negotiations. It is most likely that they have been disapproved with loan modification for insufficient income or they no longer live in the house. If they do not make enough income to qualify for a loan with lower interest rates and lower values, then they will not be able to continue making payments for their mortgage. The homeowner should include this in the hardship letter and you as an agent should include this in your cover lender to the lender. Also, include the loan modification rejection letter in the short sale package.

Other Articles to Read:

Bank of America’s Cooperative Short Sale Program

Banks Are Calling Homeowners To Solicit Short Sales

Options To Prevent Gainesville Foreclosure when Unemployed

Do I Have to Pay for the Real Estate Agents Commission?

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.


Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals. Gainesville Short Sale Agents

  

Gainesville Short Sales – What is the Difference between Note or Promissory Note and Mortgage or Deed of Trust?

Gainesville Short Sale – What is the Difference between Note or Promissory Note and Mortgage or Deed of Trust? A note (promissory note) is – very simply – a contract whereby a party makes a promise to pay a sum of money to another party under specific terms. In real estate, it is typically a borrower agreeing to make monthly payments of principle and interest over a period of time to a lender.

The note has nothing to do with the property itself, and can technically exist without any collateral at all. If the Gainesville borrower doesn’t pay, the LENDER or short sale bank can sue “under the note and obtain remedies for breaching that contract. A “servicer” aka “debt collector” cannot if they have no equitable interest.

While there are differences between a mortgage and a deed of trust, let’s ignore them for a moment, and use the term mortgage.

A mortgage is actually a transfer of an interest in property. While a mortgage is tied to the underlying debt created by the note, it is not a promise to pay the debt. It really isn’t a “promise” to do anything. Instead, it contains “granting” language – like a deed – which gives the lender the right to take the property if the borrower goes into default and doesn’t pay under the terms of the note signed in blue ink. There are clauses in the loan that allow for this to happen such as the acceleration and due on sale clauses.

Key Differences of Note and Mortgage

A note is singed by the people who agree to pay the debt.
A mortgage is singed by those who own the property being mortgaged. In a typical residential setting, signers of the note and the mortgage are the same, but they do not have to be.
A mortgage needs to be recorded in the county or town recording office, the note does not. Instead, the note goes directly to the lender. This is the “instrument” that secures the “note” to the house.

Other Articles to Read:

Mortgage Relief For Unemployed

Foreclosure News Reports On More Loan Transferring

Short Sale Agents in Gainesville Encourage Homeowners To Take Action

Short Sale Agents in Gainesville – What Gainesville Underwater Homeowners Say

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.

Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals.