Has any one heard of this type of thing before and if so or not, please give me your opinions…
Found buyer for short sale property for $105,000. Wells Fargo has accepted it, but wants the homeowners to sign a promissary note for $14,000, (this is their primary residence). Their lawyer advises absolutely not…and let it go to foreclosure!!!
Buyer agreed to up the offer to $115,000 which leaves balance of $5,000 and then the Realtor offered $1,000 which leaves a difference of only $4,000.
Wells Fargo said no the $14,000 has to come from the homeowners! They will not accept the higher offer from the buyer!!
I thought maybe to have the buyer set up something on the side with the homeowner for $10,000, but I do not know if this is legal or what the lawyer is going to say.
Any suggestions as to what to do? I have a couple of more with Wells and am concerned about the promissary note.
What is the promissory note for? Back payments or something else. Besides punishment I don’t understand why the owners have to pay. I’d think the bank would be happy to get more money and not have a foreclosure. Let us know the outocme.
Good luck,
donrock
Wells Fargo and many others like to play games. In a situation like this, I ask the bank what will it take so the homeowner doesn’t have to carry a note. And remind them of the reasons the homeowners weren’t able to make the mortgage payments in the first place.
The bank always responds back with a number they want to net. Then repeat back “So if you get $…, then you don’t need the homeowners to carry a note.” Then tell them you will get back to them.
Then I go get the buyer to increase the offer. Even then, I don’t give the bank the exact number they were looking for. If you give in to the bank quickly or easily, they will want more.
You have to play the game to win, not just to get it done fast.