If a shortsale is declined by the bank when I already have a buyer because they say that they can sell it for higher price, can I get a guarantee from them?

I have been trying to sell my boat for almost a year and I finally have a buyer for a short sale which I submitted to the bank for approval. They have initially approved the sale but they have called back and stated that they feel they could see the boat for a higher price. They will not provide a guarantee however. I would like some sort of guarantee stating that they have to see it for what my buyer is willing to pay or higher. My fear is that they will run into the same problem and sell it for less than what my buyer is willing to pay right now.

Asked on November 4, 2011 under Bankruptcy Law, New York

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Unfortunately if you are behind on your payments to your lending institution for your boat or you want to sell it for less than what is owed on the loan where the lending institution will agree to the sales price and nothing more as full satisfaction on its loan, you can seek a written guarantee stating that the minimum sales price will be the amount presently where you will have no recourse against you in the future if you try and sell it for more.

Unfortunately I sense that the bank that you are writing about will not agree to your proposal. I would write the bank stating your position about the need to take the offer now and move on. If you sell the boat, make sure you get a document in writing from the bank stating that you will not be responsible for any shortage on the loan.


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