How do you read the Bank’s Short Sale Approval Letter?

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How do you read the Bank’s Short Sale Approval Letter?


The woohoo short sale agent out in Escondido CA, Melissa Zavala, got me to thinking harder the other day about the short sale approval letter the seller receives from the bank on a short sale prior to closing. Sellers wait long and hard to receive this most treasured of letters. It is especially important because sellers are looking at the language to see if the Bank will come after them for the monies the bank has lost in the transaction.


I hope I have impressed on all of my sellers to scrutinize that bank short sale approval letter very closely on the wording when received.  Not to say that my team of short sale lawyers doesn’t- it is just I want to make sure my sellers are happy with the wording especially when it comes to the deficiency judgment.  Do you remember what the deficiency judgment means?  It is the amount of monies the Bank will want from the short sale seller to cover the deficiency between agreed upon sale price and mortgage amount.


Waiver of the deficiency judgment for sellers is number one on the list of must haves with the Banks when negotiating a North Kingstown short sale.  My last Bank short sale was a true tug of war with the Bank’s investors to get a waiver of deficiency judgment that was acceptable for my sellers and it got me to wondering…when sellers use a real estate agent who does not understand the importance of this waiver of deficiency judgment and the wording needed on that short sale approval letter what is a seller to do?  Banks will agree to a waiver of deficiency judgment usually with a contribution of monies from the seller at closing.  This is part of a negotiated settlement with the bank on a short sale and you should always be sure you get it.  It is the ‘brass ring’ the sellers want to see written with the banks John Hancock on this bank short sale approval letter.

So a seller needs to ask some pointed questions in hiring North Kingstown short sale agents:

– Do they have a negotiating and legal team in place to handle short sales?
– Do they have a successful track record with their past North Kingstown short sales?


As we have all seen in North Kingstown and surrounding RI towns there are inexperienced short sale agents who list properties and say they know how to do short sales and do not…they don’t run a preliminary title search on the property and do not do their due diligence on the mortgage status of their sellers when they take a short sale listing.  Who is eventually harmed?  In most cases, sellers are when they end up in foreclosure.  Be aware of the questions to ask a Real Estate Agent and don’t let this happen to you.


My team has been successful as North Kingstown short sale agents and delivering positive outcomes for clients.  It is a tough road to go down on RI real estate short sales but with persistence, time and knowledge it can work out well for sellers.  Give me a call to set up a confidential meeting if you are underwater on your mortgage or struggling to pay it.


How do you read the Bank’s Short Sale Approval Letter?


Ginny Lacey Gorman is a North Kingstown real estate agent who works and knows the RI geographic area of homes for sale, schools, happenings, important tidbits of information and businesses well.

  Waterfront, water view, ocean front, luxury and coastal RI real estate are her specialty, so call Ginny for your buying and selling home needs.

As North Kingstown short sale agents, she and her team helps clients navigate successfully the rough short sale waters throughout RI, contact Ginny if you are having trouble paying your mortgage.  When you are in need of an internet savvy RI Real Estate Agent who sells homes in this real estate market, call Ginny today at 401.529.7849.


  1. says

    Excellent article that every seller in North Kingstown considering a short sale should read! It’s clear you understand the importance of properly addressing deficiency judgments during the short sale negotiation process. Short sale sellers in your area looking for an experienced North Kingstown Short Sale Agent should contact you.