Short Sale Deficiency

Posted: Wed Sep 16, 2009 9:46 am Post subject: Short Sale Deficiency

I have my home on the market in short sale and have had some offers on the home recently. I was lead to believe that the bank can not go after me to collect any deficiency on the loan, but did not do my homework. My loan is with HFC. Does anyone know what the banks stance is on this matter for a MA resident? Any info would be great.

savior70 · Posted: Thu Sep 17, 2009 6:02 am Post subject:

Hi,

As far as I know, in Massachusetts, your lender can come after you for the deficiency due to the short sale. However, it is completely up to your lender whether they'll forgive the deficiency or they'll come after you to recover it. There are some states which have strong anti-deficiency laws which don't allow the creditors to sue the borrowers for deficiency. You can check with an attorney in your state if any such laws apply in your situation.

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