GMAC SHORT SALE APPROVAL LETTER – WHAT TO LOOK FOR TO GET FULL RELEASE

Above is an example of a Short Sale approval letter from GMAC. This approval letter gives this seller a FULL RELEASE. Every home owner doing a short sale should be looking for a full release, or the bank may pursue them with a deficiency judgment and that would be followed by wage garnishment. The only way that I am aware of to stop wage garnishment is through a bankruptcy. In any situation, if you are a home seller for a Short Sale please have an attorney review your Short Sale approval letter and get the legal answer as to the intention of the letter.

For those home sellers with 2nd mortgages, you should be asking the question:

How can I stop my 2nd Mortgage from pursuing a deficiency judgment?

Here is a big difference between Short Sale and foreclosure and that is all about your 2nd mortgage. If you have a 2nd mortgage and you get foreclosed on, expect them to be garnishing your wages as soon as they can.

What? You might say? Yes, they have the right to go after you, even when the home is foreclosed on. This is a major reason to do a Short Sale and put an end to the misery today.

Does a Short Sale give you a full release? No, not unless it states you are released in full. Many Short Sale home sellers are getting hit with garnishment.

So, How Can You Stop Your 2nd Mortgage From Pursuing a Deficiency Judgment? Most will give you a FULL RELEASE with a 20% settlement at close of escrow. Usually the 1st will give them 10%, so all you need to do is raise 10%. I don’t care if you have to beg or borrow, this is a must. You do not want a garnishment pushing this misery out for several more years.

Example: $100,000 2nd mortgage. With a settlement of $20,000 at close of escrow they will go away for ever. First we work on getting 10% from the 1st mortgage, and if that happens we only need $10,000 from the seller. In this example, with foreclosure or a Short Sale without Full Release they will garnish your wages and take up to $100,000 plus interest.

Folks- this is a no brainer! Get the Short Sale done. Get the 2nd 20% and start your financial life again.