QUESTION
After a short sale can the bank come after you for the difference?
Asked on Sep 26th, 2012 on Foreclosures - California
More details to this question:
Sold my house in a short sale in 2010 now I'm getting letters from collection agency trying to collect on the difference.
6 ANSWERS
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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It depends on the short sale agreement. Most people do not understand that they are signing a contract to pay money as part of the short sale.
Answered on Sep 28th, 2012 at 9:55 AM
Civil Litigation Attorney serving Federal Way, WA
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Stasch Law LLC
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Your short sale should have negotiated a waiver of the deficiency. If it did not, yes, they can. Did you have an attorney or a realtor handling the short sale? This should have been explained to you or negotiated. If I knew which lender, I could guestimate whether they will actively pursue.
Answered on Sep 28th, 2012 at 9:53 AM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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Yes, this is of course one of the problems of having a short sale, unless the bank in writing waives the deficiency balance.
Answered on Sep 28th, 2012 at 9:51 AM
Family Law Attorney serving Bluffton, SC
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Peacock Law Group of the Lowcountry, LLC
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In SC, there are quite a few details that are missing from this statement of facts to be able to fully answer your question. However, it sounds like the bank may have somehow gotten a judgment against you for the deficiency between the short sale price and what you owed on it. Also, it would need to be known if this was truly as a result of a short sale? You should contact a local attorney to discuss this matter.
Answered on Sep 28th, 2012 at 1:23 AM
Litigation Attorney serving Pearl River, NY
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Law Office of Bijal Jani
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There are circumstances in which if the short sale was not negotiated properly with the bank and the bank retained the right to secure a deficiency judgment against you even after the short sale, yes the lender may try to seek a judgment for the difference. You should consult with an experienced attorney regarding this matter to prevent this action from going further.
Answered on Sep 28th, 2012 at 1:20 AM
1 Award
Not in CA. It's strictly prohibited.
Answered on Sep 28th, 2012 at 1:13 AM