Has anyone heard of mortgage companies being allowed up to 4 years to go after prevous sellers for the difference of what the short sale was accepted?
No but I have heard of the MI company not allowing the short sale unless the seller signs an agreement for a certain amount to be repaid over a period of years. ie: $15,000 to be paid back over 15 years at $95/mo
No. I thought that was one of the advantages of a short sale over a foreclosure, that the seller/owner was not held responsible for the difference.
I haven't seen it yet but it does make sense for them to try and get some of their money back!
I don't blame the lender, people need to be held accountable. A low interest over a period of years is not unreasonable.
This should be addressed in the short sale acceptance. In California, we are a non-recourse state, so if they allow the home to go to foreclosure, they can't come after the home owner. We use this to negotiate with the lenders while the short sale is going on. But if a complete release is not spelled out in the acceptance, they better keep negotiating. HELOC loans will do this and you better read the fine print.
I thought it was five years...
there's a lot of difference between RELEASE of mortgage and SATISFACTION, as mentioned above, read the fine print on the short sale approval letter...
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