It’s very rare for homeowners to find a Florida short sales agent with both considerable experience and absolute integrity to offer on the table. Unfortunately, it’s only that kind of short sales realtor who may be able to help you get rid of that unwanted promissory note.
SHORT SALES AND PROMISSORY NOTES
Many agents love to talk about short sales in the most positive terms and then gloss over the not-so-nice consequences that they come with. Promissory note is one such consequence, and it’s sad when homeowners only learn about them when it’s already too late.
Short selling your home does not always guarantee that your remaining debt would be 100% forgiven. There may be times that a lender would only approve of Florida short sales if and only if the homeowner agrees to sign a promissory note.
What Your Florida Short Sale Agent Can Do about Promissory Notes
A skilled Florida short sale realtor won’t just help you with short selling your property. If he or she truly cares about you as a client, then your realtor would also do everything possible to improve your financial future.
Unsecured promissory notes
The best agents do their utmost to ensure that homeowners only sign unsecure promissory notes. An unsecure promissory note means that you will not be beholden to surrender possession of any of your assets to your lender in the event that you fail to honor your obligation for whatever reason.
Reduced amount for promissory note
Let’s say your home is currently valued at $250,000 but you owe your creditor $400,000 for it. If you short sell your home at its present market value, you will still end up owing $150,000. This is what your lender would ask you to sign a promissory note for. Negotiations between your agent and lender may, however, cause a further deduction of your debt.
Instead of having $150,000 written in your promissory note, you could be asked to pay just $120,000.
Reduced settlement of promissory note
Using the above example, let’s say that you still end up signing a promissory note amounting to $150,000. It’s possible for your agent to continue discussions on your behalf and perhaps even convince your creditor to settle for $120,000 and consider it as full payment of your remaining debt.
Lastly, your Florida short sale agent can also make sure that the installments you are required to make to settle your promissory note would be free of interest charges.
Katerina Gasset is the author of http://www.wellingtonfloridashortsales.com. Katerina Gasset is the homeschool mother of 9 children and wife to Nestor Gasset. Katerina Gasset is also a writer, author, speaker, Realtor®, SEO coach, blogging coach and business entrepreneur and consultant.