Machol & Johannes LLC

General Firm Number: 866-729-3328   |   Bellevue Firm Number: 206-547-5050   |   General Firm Fax: 303-830-0047

The Process

The attorneys at Machol are generally open to settling the judgment within the context of the short sale.

Specific Tip: Present the seller’s hardship by submitting both a hardship letter and by re-iterating the hardship in the body of an email directly to opposing counsel. Make clear that the proceeds of the sale are the client’s only chance to recover the debt.

  1. Locate Attorney Contact Information: Review the title report for the judgment amount, case number, and attorney of record. Search the WSBA Lawyer Directory for contact information for the attorney of record.
  2. Prepare and Submit Settlement Offer:
    1. Fax and email the settlement offer:
      1. Third-party authorization
      2. Title Report
      3. Purchase and Sale agreement
      4. Proposed HUD
      5. Hardship Letter
    2. Offer a nominal amount for full settlement (e.g. 6% of the principal balance)
    3. Follow up with email and voicemails until you have a response.
      1. Call often to follow-up
      2. Attempt to reach the attorney’s paralegal
  3. Negotiate: If the initial offer is rejected, increase your settlement offer by 2 -5% increments until you reach an acceptable agreement.
    1. Lien Release: If an agreement for full settlement cannot be reached, offer a nominal amount to release the lien
    2. Final Numbers: Push for their bottom-line for a lien release
    3. Full Settlement: After the attorney provides you a lien release number, attempt again to determine the judgment holder’s bottom line for full satisfaction of the debt
  4. Confirm in Writing: Request a letter confirming the agreement.