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Stop Modesto Foreclosure via Short Sale, But No Promissory!

Spoke with agent working to stop my foreclosure in Modesto, California. We spoke about the status of the short sale offer. The rep at the bank finally got back to my short sale agent and said they may want me to sign a promissory note in order to get this short sale approved and stop foreclosure.

I told him I will NOT be signing any promissory notes this time around. I’m resigned to let this one go into foreclosure since I couldn’t make good on an additional debt payment at this time. I already have 2 official foreclosures from California houses and 1 foreclosure from Dallas. A fourth foreclosure is probably not going to ruin my credit and FICO score much more.

When I agreed to sign the last promissory note for the Sacramento house foreclosure, that was a different story. At that point I was still hoping to stop foreclosure on all the remaining houses. And if I would have succeeded I would only have to worry about the Dallas foreclosure, which doesn’t report on my credit score since it was a private lender (though, they say it eventually will).

Another thing they want is me to put up $4,000 cash to get the foreclosure auction postponed since it’s so close (the 28th). The agent knows I can’t afford to do that so he offered to eat that cost from his commission and the buyer’s agents commission. So at this point we’re waiting to hear from the lender to see if they can approve the short sale without a note.

I don’t get why the first even wants the promissory note. I don’t think they are losing much if anything at all. The offer is $300,000 and the principal amount on the first is about $258,000. If you factor in the commissions, closing costs, late fees, etc, the net should come pretty close to pay-off.

I asked the agent to get me the net sheet that was sent with the short sale package. I want to see how much the lender is netting and what’s going on here.

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