A: Old fashioned negotiation.
Q: How do you negotiate the old fashioned way?
A: Shift risk and cost to the lender should they reject your offer; and pay them some money should they accept it.
Q: What if they won’t give you a crystal clear written release after they positively agree to a release?
A: Send them a letter confirming they agreed to a full blown release and instruct title to attach it to the closing documents “as if fully incorporated therein”.
Q: Doesn’t the lender have to sign a release document for the release to be effective?
A: That would be best, but if they don’t, you will have to go with second best which is a written “addendum” letter to the closing documents stating the lender agreed to a release.
Q: What if the lender sues the homeowner anyway, even after agreeing not to sue?
A: Subpoena the closing documents from the title company which contain the letters confirming the release, and submit it to the court. The lenders are responsible for the terms of the closing documents which incorporate the confirming letters as an addendum.
Q: Will the judge dismiss the lawsuit based on confirming letters in the settlement documents, if the lender never signed a written release, even though the lender did, in fact release the homeowner?
A: We don’t know for sure whether the judge will “deem” that there was a release when there was no signed document, even if there really was a release. But if you can prove the lender actually released the homeowner by admitting other evidence as proof, such as confirming letters and a cashed check, the judge must dismiss the lawsuit.
Q: I have never heard of this concept, where did it come from?
A: We designed it by trial and error. Time will tell how well it will work.