Many homeowners believe that if their lender agrees to a short sale, they have no further obligation to the lender.
This is not true!
As the Wall Street Journal reports today, many lenders are being more proactive about going after homeowners for the remaining unpaid balance on loan. For example, if the mortgage balance is $400,000 and the lender agrees to accept $300,000 in a short sale - the lender can ask the homeowner to sign a note for the $100,000 remaining. Other lenders have gone to court to obtain the additional money from other borrower assets.
So be sure you understand what the lender is agreeing to when they approve a short sale. Have your attorney review the agreement or negotiate it for you.
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.
Leave a Comment