Nevada is both a Judicial and non Judicial state. For my answer I will base it on the Judicial foreclosure process. In regards to your question it’s not a matter of a dollar amount reduced from the principle amount the determines whether or not there will be a promissory requested. For the bank it comes down to the Total Loss the investor is willing to accept. This number is relevant to the Offer to Net Value (OTV), Offer Gross to Value (OGV) and the Offer to Net total value (NTV). These percentages are the guidelines that the loss mitigator works within when determining the acceptance of the short payoff. (Naming conventions may vary slightly from lender to lender)

Now, I see that your a Realtor. The problem a Realtor faces when trying to negotiate with a bank is the fact when a buyer brings x amount of dollars to the table, you have no room for negotiations, meaning usually the buyer wont provide additional funds to satisfy the bank in order to allow them or motivating them to waive the deficiency demand. Their are a couple of limitations a Realtor faces when working short sales such as how to handle the BPO, structure the offer letter, and the Preliminary HUD-1. These three areas of the short sale can absolutely kill your short sale if handled incorrectly and/or if a person doesn’t understand the in’s and out’s of how they should be handled. Another example would be B of A. An agent really needs to know the tips and tricks of how to handle Equator and B of A deals in order to successfully negotiate.

Lastly, as far as the 10% being a usual request. We see this with 2nds. However, we offer more money to make it disappear. First mortgages, with a few exceptions rarely provide a an approval letter without agreeing to release lien and report the debt as satisfied. The premise of the article is just pointing out that short sales need to be pre-negotiated versus the traditional methodology Realtors normally use of post negotiations. I hope this helps. Let me know if you have further questions.

thanks,

Working with an investor in this situation is a win-win for everyone involved and I recommend it to any agent or owner that is ready to get serious about short selling their listing/property.