short sale/promissory note

We have been approved for a short sale. The 2nd. mortgage, 5/3 Bank, has agreed as long as we sign a promissory note for the full amount of our existing loan. They said they would report it as a write off on the credit bureau and not report at that we are actually paying them back through the promissory note. Is this legal? So it's like paying them back under the table, since they will not report this payback at all.

In my opinion is isn't a good idea to sign on that debt. Try to tell them no and see what they say.

http://www.shortsaleway.com

Jon Christopher of Short Sale Way

I am now running into the same situation with my clients. I am also fighting for my clients so that they do not have to pay a prom note. Basically its not affordable and if so why on earth would you request a short sale to begin with and furthermore, if they look carefully at the financial information it should clearly show that its not financially feasible. I also let them know that the lien holder's don't always allow especially if they are in 2nd position. Fight and let them know that its not feasible financially and if forecloses, the jr lien gets zero, (in Texas)and or it will cost twice a much foreclosing fees and tax fees if it goes to foreclosure. I think legislations should mandate that if a lender agrees to a short sale, no promissory note or side payments are acceptable and should be deemed illegal....talk about bail out...... where is the homeowner's bail out? I think it should be outlawed especially since they are asking for the balance? That is absurd!

Tell em to take out of the bail out money they are receiving!

I'm going through this right now also!!! There is no way I am agreeing to this! What do I need to do next? Let the house foreclose if they won't accept my short sell because I won't sign a promissory note?