Short Sales sure seem like a simple way for underwater homeowners to get rid of there over priced homes.
But some Lenders are increasingly adding language to the approval package, reserving the right to pursue the deficiency later - that is, the difference between what you owed on the house and what it sold for.
Some homeowners, so anxious to get out of a pending foreclosure, skip right over that part of the letter. Some understand but opt to take their chances, betting they won't hear from the lender again.
For some lucky buyers, this has been the case - so far. They've sold their home as a short sale, moved on, and haven't had any problems. But other lenders require the seller to agree upfront to pay back a set amount
Lenders don't always go after short sale homeowners. But in Florida, lenders can wait up to five years to file for a court judgment to make the borrower pay. After the judgment is granted, the lender has 20 years to collect the cash.
Some sellers might be surprized in years to come when the Bank comes knocking for repayment. So don't think your worries are over just because you did a short sale.
If you have any Real Estate Questions about Buying or Selling please call
Cynthia White Realtor
EXIT ISLAND & BEACH REALTY
321.652.1974 cell
Search the MLS in Brevard County http://cwhite.islandandbeachteam.com/
Comments(5)