How to get sellers released from deficiencies

How to get sellers released from deficiencies

You can read this article in its entirety at www.loansafe.org It is a great article about a loophole in the banking system. This is a great read, this is really good information for people who are facing this terrible problem!

When sellers agree to do a short sale they are not always released from their financial obligations on the short pay off. Sellers can be held liable for a deficiency. In some states the bank can't pursue the seller for a deficiency - These anti-deficiency states do generally only protect people and their primary residences. In a non-recourse mortgage state, borrowers are not held personally liable for more than the home’s value at the time that the loan is repaid. The lender may recoup some of its loss through foreclosure. However, the lender may not sue the borrower for additional funds. If the foreclosure sale does not generate enough money to satisfy the loan, the lender must accept the loss. Here is a list of these states:

Alaska

Arizona

California

Connecticut

Florida

Idaho

Minnesota

North Carolina

North Dakota

Texas

Utah

Washington

Please ensure that you check with the state statutes to see if you qualify for this program. I hope that this information helps!

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