Posted on: 30th Sep, 2009 09:55 am
what language should i be looking for in a short sale agreement with my lender to insure that they don't come after me for a deficiency judgment after the short sale is executed ?
one of the lenders (primary) says specifically that they waive their right for a deficiency judgment but the other (secondary) just says that they will "release the lien free and clear upon the completion " of the sale. is that enough to prevent them from collection action after the short sale?
one of the lenders (primary) says specifically that they waive their right for a deficiency judgment but the other (secondary) just says that they will "release the lien free and clear upon the completion " of the sale. is that enough to prevent them from collection action after the short sale?
From a simple of word interepretation it looks perfectly fine
Just run it by an attorney who has experince with such agreement and ask for correction, if necessary
Just run it by an attorney who has experince with such agreement and ask for correction, if necessary
Hi crhfla,
As far as I know, in a short sale, the lender has the right to sue you for the deficient amount resulting from the sale of the property. Once the sale is complete, both the lenders will demand their dues from you. If the lender has assured you that he won't be charging the deficient amount from you, then ask both the lenders to give it in writing. Alternatively, you can draft such an agreement from a lawyer and get it signed by the lenders.
As far as I know, in a short sale, the lender has the right to sue you for the deficient amount resulting from the sale of the property. Once the sale is complete, both the lenders will demand their dues from you. If the lender has assured you that he won't be charging the deficient amount from you, then ask both the lenders to give it in writing. Alternatively, you can draft such an agreement from a lawyer and get it signed by the lenders.
As per defination, you may be asked for payment of deficit. so discuss with them before initiating short sale
Steve from teh wordign it looks like the lender is not goign to collect the deficient amount, but its a good idea to run ti by some one who can understnd these legal terms