I have been doing Countrywide short sales since 2007 and this is the first time that Countrywide is putting this verbiage in the letter:
"Countywide and/or it's investors may pursue a deficiency judgment for the difference in the payment received and the total balance due, unless agreeed otherwise or prohibited by law, if the short sale closes on the loan referenced above. In addition, if this loan is covered by mortgage insurance, the mortgage insurance company may reserve the right to purse the seller for deficiency based on the terms of the mortgage insurance policy. Furthermore, there may be tax consequences associated with entering into a short sale."
The negotiator says that the bank will most likely issue 1099 but he can't remove this verbiage. He says that it's a new letter that Countrywide is using.
I'm assuming that Countrywide is doing this for few reasons including trying to prevent people dumping their investment property and so forth. We're asking for an attorney's response but meanwhile anyone have any insight? TIA. Here's the letter.