Virginia Short Sale Specialist / Realtor - Certified Distrssed Property Expert (CDPE)

Wilshire Credit Corp Short Sale Approval Letter

Here's another Wrilshire Credit Corp short sale approval letter.  This is one of the toughest banks to negotiate a clean short sale.  Notice immediately how they state that this is lien release only.  On second page, fourth paragraph, it states the following:

This letter is for the release of lien on the collateral property only and each party signing below is responsible for any deficiency balance due under the promissory note(s). This letter will not release parties from any obligation under the promissory note(s).

It's very difficult to get Wilshire Credit Corp to waive the deficiency judgment.  They make you sign promissory note.  

Although I have never been involved in a Wilshire Credit Corp short sale where they release the lien and deficiency judgment, I did hear another short sale specialist in another state sharing his tactic.I actually have to pay $99 a month just to participate in short sale webinars where we discuss the latest trends and discuss specific banks.  I'm not going to blog about it until I actually see proof of it. It looks like our team will be doing a Wilshire Credit Corp in few weeks so I'll keep you posted.  Meanwhile, here is a recent Wilshire Credit Corp short sale approval letter.

Letter 1

I actually already posted this in a previous blog but I'm posting it so you can compare the two.  It's pretty much the same letter as above.

Wilshire Credit Corp's short sale department number is 888.313.7538.  If you have any questions concerning Wilshire Credit Corp short sale, email me or call me at 703-401-0571.

Simon Hahn - Keller Williams Realty (VA, MD, DC)

Certified Distressed Property Expert (CDPE)

Wilshire Short Sale Approval Letter

Here's an example of Wilshire short sale "approval" letter.   Notice first thing the letter says is that it is release of lien only.  This is not good.  Furthermore on page 2 the letter states:

This letter is for the release of lien on the collateral property only and each party signing below is responsible for any deficiency balance due under the promissory note(s).  This letter will not release these parties from any obligations under the promissory note(s).

Basically Wilshire approved this short sale but they are requiring the seller to sign promissory note for the remaining balance.   Wilshire is a smaller bank and smaller banks can be hit or miss.  Some are very lenient and some are very tough.  The good news is at least Wilshire took only about a month to process the short sale.  One month is consider very fast.  One of my co-workers did a Wachovia short sale in little over 3 weeks. 

You can view the sample Wilshire Credit Corp short sale approval letter here.

If you have anything to add to Wilshire short sale, please feel free to comment or email me.

Simon Hahn Group

Keller Williams Realty

Seller Liability Question

I received an alarming email from a realtor today.  He was working on his very first short sale.  Here's the email.

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I am currently working on one and have gotten the approval, but the bank is asking that the seller pay the remaining deficiency. I thought a short sale was a forgiveness of the debt. They sent a document stating "release of lien only".

The mortgage company is xxxxxxxxxx.
Can you please give me some advise.

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I cringed when I read this email.  Having done short sales since 2007, I knew this guy was in trouble. Being the nice guy I am, I referred the agent to an attorney who could help him.  I knew the steps I would take but I didn't give him specific advice since I might get blamed.  

One thing the sellers need to keep in mind is that not all short sales qualify for Mortgage Debt Relief Act of 2007 and seller's don't always walk scot free.  I have seen advertisements that claim that sellers will have no liability with short sales.  Well if it sounds too good to be true, it probably is. Here's what the sellers had to bring to short sale closings in some of my recent short sale transactions. 

1. Wells Fargo Short Sale

Seller had to bring $1,000 to closing.

2. Countrywide Short Sale

Seller had to bring around $300 to closing.

3. Chase Short Sale 

Seller had to bring $666.83 to closing

4. Countrywide Short Sale

Seller had to bring $700 to closing.

Fortunately none of these short sales involved promissory note or deficiency judgment.  In cases with big second trust (HELOC), many banks will ask for 5k to 20k at closing or ask the sellers to sign a promissory note.  The goal of short sale is to minimize the liability for the sellers but it doesn't always mean zero liability.  When doing a short sale, choose your agent wisely.  Make sure they have done at least two (preferably at least six).  For added layer of protection, attorneys should handle the negotiations with the banks.   

Let me know if you have any short sales questions.

Simon Hahn - Certified Distressed Property Expert (Short Sale)

Keller Williams Realty

703-401-0571 (Direct)