Case Study: In Cave Creek Owed $915k to Green Tree and Chase
Location: Cave Creek, AZ
Details: Owner had two loans on his property.
- First loan had a balance of $665,000.
- Second loan had a balance of $250,000.
- Total owed against the property: $915,000
- Our client’s house was short sold for $465,000.
Scenario: This owner did not have protection under Arizona’s anti-deficiency statute. Therefore, it was paramount that Kelly Cook and the Cook & Associates Real Estate Advisors negotiate well with the 2nd lien holder to not only grant a release of the lien on the 2nd loan; but to also and most importantly, get protection for our client (seller) by having the 2nd lien holder provide full mortgage debt relief and satisfaction. Our main objective was to ensure that the 2nd lien holder waive their rights to ever come after the seller and pursue a deficiency judgment against them.
In many cases like this, there is a very good chance that the 2nd lien holder will ask for some sort of cash contribution toward their loss. This number can vary dramatically, but a general rule of thumb is that the lender will ask for some amount equal to 10% of the outstanding loan balance. The lender does this because they know they have leverage due to the fact they will have legal recourse to come after the seller if the property forecloses. If this occurs, we use all of our techniques and experience of completing 300+ short sales to do all that we can to minimize this contribution amount for the seller.
Outcome: Please see the attached SHORT SALE APPROVAL LETTER proving the details of our successful negotiations on this short sale. We were able to get full debt relief for our client (seller) protecting him from ever being pursued for the difference the banks settled on. In addition, we were able to negotiate a ZERO $0.00 contribution from the seller to bank! $250,000 balance settled for only $9,000! And… we were to negotiate $9,000 from the 1st lien holder to cover the $9,000 demand the 2nd lien holder required! The seller got out from under all of his mortgage debt for ZERO, nothing out of pocket whatsoever!
Recap: Our client, the seller was able to walk away from $450,000 of mortgage debt for absolutely NOTHING… not one dollar out of pocket! All because he decided to pick up the phone and contact Kelly Cook and the Cook & Associates Real Estate Advisors. We have many other examples just like this we would love to share with you as well. We truly are short sale specialists working the Greater Phoenix, AZ area and would love to speak with you today about your current situation and how we can help! Call today!
Actual Approval Letters
