Posted by Tom on October 23, 2009 at 23:42:17:
I am in the process of negotiating a short sale with the bank for a commercial property. The buyer is in place.The offer is for more than the liquidation appraisal amount.
There is a question of the deficiency judgement. However, the bank is already taking my savings account of 35k that was pledged against the property. I have agreed to give them over $40,000 in rents that I have been holding since I've stopped making payments because of my financial distess.Now they want me to sign a "hope" loan for $50k paid over a number of years to take care of the deficiency. I've been working with them diligently. I really don't want to take on this 50k loan because I have already lost over 550k on this project.
My question - If I don't agree to this loan, based on the facts presented do you think the bank would really foreclose, wait it out, and probably lose this buyer thereby prolonging their agony. Or do you think they will not pursue the 50k just to get this headache resolved.