Enjoy your new house AHMSI!

Today I just want to vent. One of my short sale listings is going back to the bank, even though we had a full price, cash offer. The lender, American Home Mortgage Servicing Inc (AHMSI) approved the sale but wanted to retain their right to pursue a deficiency down the road. The sellers would not agree to the sale unless AHMSI waived their deficiency rights. In the state of Oregon, if the first lien holder files a notice of default and election to sell and chooses to pursue a non-judicial foreclosure, they have no right to a deficiency claim after the foreclosure. In this case, since AHMSI would not waive their deficiency rights, it’s actually in the sellers’ best interest to allow AHMSI to foreclose knowing that AHMSI cannot pursue a deficiency. I’m really frustrated because I worked really hard on this deal, the buyer was really excited about the house, and the sellers were relieved to sell the house but the lender decided foreclosure was the better option for them. The most ridiculous part of this whole situation is that the full price cash offer we got was for $89,000. By electing to foreclose, AHMSI will now incur roughly $75,000 for the foreclosure process AND there’s no way they will be able to sell this house for $89,000 once they finally relist it. That makes me smile a little bit. Enjoy your new house AHMSI!

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