I'm looking for some words of advice about how to achieve a Waiver of Deficiency for a Short Sale with Aururoa Bank.
I doubt this is a unique problem...I've had a request into Aururoa for this short sale since November. To be fair, they did come back three weeks ago with with an approval on the short sale, but without a waiver of deficiency. It was never a smooth process...the "Relationship Manager" never once returned my call and I had to go through the main switchboard every time I needed to get answers. When we got to an underwriter, she was a delight to deal with, and when I needed to escalate the file (thanks to the non-response of our "Relationship Manager") the Escalation Person (Jesse) was also pleasant...I can't say I ever got stellar service, but they were always pleasant.
Their reluctance to give a waiver of deficiency is not unusual in the world of short sales. The loan was a purchase money mortgage (1st Lien) in the State of Arizona, which provides for waiver of deficiency for such notes IN THE EVENT OF A FORECLOSURE. But...there is no judicial or legislative relief when the disposition of these properties includes a short sale and so we find our selves needing to either get the deficiency waived or allow the property to go to foreclosure. A shame...the price we achieved is very fair, with only $6,000 of the proceeds going to the second lienholder--or 1.4% of the total price of $425,000. The Seller's are vacating the property (they lost their executive jobs and are now being forced to relocate to another part of the country) which means the house will be vacant and subect to risks that provides.
I've escalated this to the Legal Department who must be on a slow boat to a Chinese vacation...are there any other options I've overlooked?