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Clients paying back Short Sales?

By
Real Estate Agent with Keller Williams

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?

Comments (7)

Heather the Realtor Orlando, Lake Mary
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes

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

Jan 26, 2009 12:32 AM
Dianne Deming
RE/MAX Realty Group - Rehoboth Beach, DE

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.

Jan 26, 2009 12:36 AM
Richard Shuman
The Only B.S. I Have is from the University of Massachusetts - Lake Mary, FL
Real Estate Broker - Orlando Area - Love Referrals

I haven't seen it yet but it does make sense for them to try and get some of their money back!

Jan 26, 2009 12:44 AM
Mary PAUL, ABR, CRS,GRI, e-PRO,
RE/MAX Advantage Realtors, Searcy, AR - Searcy, AR

I don't blame the lender, people need to be held accountable.  A low interest over a period of years is not unreasonable. 

Jan 26, 2009 12:46 AM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

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.

Jan 26, 2009 01:05 AM
Wendy Smith
Wendy Smith Real Estate - Clearwater, FL
Real Estate Advisor

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...

Jan 26, 2009 11:54 AM
George Bennett
Inactive - Port Orford, OR
Inactive Principal Broker, GRI

Great question Michael - I learned a thing or two from the comments.

Feb 06, 2009 05:19 PM