A recent article in rismedia.com reveals some of the unforeseen risks of a short sale - if you and your real estate professional don't get it in writing (if you can) In most states, the lender has a certain period (5 years, 7 years, etc) during which they are able to come after you for the deficit on your short sale. Be sure to get this removed IN WRITING -- if you can.
From the article (http://rismedia.com/2010-06-08/foreclosures-often-carry-unforeseen-risk-lawsuits-from-lenders/):
"Some banks say they won't file a lawsuit, though they aren't willing to put that in writing, Kohn said. "I have no choice but to accept that," he said. "Even when you play by the rules, banks don't always do what we'd like."
Under new government guidelines for short sales that took effect this spring, lenders aren't supposed to hold homeowners responsible for any remaining mortgage debt. But not all short sales fall under the guidelines, while some lenders choose not to implement them, Kohn said."
This may be particularly important in a situation where a strategic default is in play or the short sale hardship is justified (such as a job relocation) but where a client's resources are not completely exhausted.
Realtors are not attorneys so always seek professional legal advice for your particular situation. If you would like to consider your options, please call for a free, confidential consultation.
Find foreclosure and short sale properties for sale at http://www.YourBestForeclsoures.com.
Comments(1)