Negotiating a short sale does not end at the price. Increasingly, more lenders are requiring sellers to pay back some of the loss absorbed in a short sale. Before signing a short sale agreement, sellers should take notice of any mention of a required payback. Lenders may consider removing such language if pushed back by the borrower. It’s still in the lender’s best interest to accept a short sale now than go through the expense of a foreclosure later.
DHW asks: Have you successfully sold your home as a short sale? If so, did you sign a promissory note for any part of the loss absorbed by the lender?