Understand that Short Sale Approval Letter

Understand the Bank’s Short Sale Approval Letter

The woohoo short sale agent out in Escondido CA, Melissa Zavala,

Short Sales in North Kingstown RI

Find the Brass Ring with North Kingstown short sale agents

got me to thinking harder the other day about the short sale approval letter the seller receives from the bank on a short sale. 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 trained 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 judgement means?  It is the amount of monies the Bank will want from the short sale seller to waive rights to come after them again for any more dollars owed on the mortgage.


Waiver of the deficiency judgement for sellers is number one on the list of must haves with the Banks when negotiating a North Kingstown short sale.  My last Bank of America short sale was a true tug of war with the Bank and 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 judgement and the wording needed on that short sale approval letter what is a seller to do?


Banks will agree to a waiver of deficiency judgement with a contribution of monies from the seller at closing many times.  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 approval letter.


So a seller needs to ask some pointed questions in hiring a short sale agent:

– How does a seller know whether the North Kingstown Real Estate Agent is one of the North Kingstown short sale agents who can get their short sale closed?
– Do they have a negotiating and legal team in place to handle short sales?
– Has a successful track record with their past North Kingstown short sales?


As we have all seen in North Kingstown and surrounding 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 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 RI 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 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.    Understand that Short Sale Approval Letter.


 Ginny Lacey Gorman is your go to North Kingstown Real Estate agent for homes in North Kingstown RI and beyond…knowing the geographic area, schools, happenings,important tidbits of information and businesses well.

She’s the North Kingstown short sale agent to contact if your are underwater on your mortgage

Waterfront, oceanfront, luxury and coastal RI homes for sale are her specialty but all of RI is her backyard. When you are in need of a good professional for your buying and selling needs and an internet savvy marketer and agent who sells RI houses in this real estate market – call Ginny at 401.529.7849.


  1. says

    Ginny, you are clearly a North Kingstown Short Sale Agent who gets it. North Kingstown short sale sellers would be well-served to contact you and your short sale team to guide them through the short sale process.

  2. Lakeland FL Short Sale Agent says

    Great explanation about short sale approval letters and waiver of deficiency. Selecting an experienced North Kingstown Short Sale agent like Ginny Gorman who has a negotiating and legal team that can go the distance for their sellers is essential.

  3. says

    Thank you for sharing an expert North Kingston Short Sale Agents say regarding short sale approval letters. This post will be very helpful for home sellers to clearly understand the factors of short sale transactions. Great post Ginny!