Foreclosure in 33180>Question Details

Vicki, Home Owner in 33180

In Phoenix, AZ does the bank come after the owner for the diferrence between what is owed and the amount of the short sale?

Asked by Vicki, 33180 Sun Jan 9, 2011

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If there is more than the what is owed the bank in a sale, and you have money left over, you didn't need to have a short sale. That would be a long sale with money coming back to the owner.
0 votes Thank Flag Link Fri Feb 11, 2011

I have been doing short sales for over 4 years and my own experience is that it all depends on what bank is doing the short sale. When the approval letter is issued some banks state clearly that they "reserve the right to pursue the owner for the difference" while others will also indicate that this letter releases the owner from any further obligation. So for these two cases things are cleared. The problem is that some banks don't say one thing or the other, so it leaves the door open. You could call your bank and ask them what is their policy, most of them will tell you what to expect. With all said, I think it is still better to do a short sale than to foreclose on the property. And by the way, the person handling the short sale can also NEGOTIATE with your bank and let them know that you will only close if they put in writing that they will not pursue the difference. REMEMBER: In real estate EVERYTHING IS NEGOTIABLE and as the seller you still have the last word!
0 votes Thank Flag Link Mon Jan 17, 2011
No, the bank does not come after the homeowner, unless that is part of the agreement. The seller and the bank will agree on the terms of a short sale prior to closing. This agreement will be in writing via the bank's Approval Letter. If you don't agree to the terms, you don't have to close. Please call us directly to discuss your specific situation. Our services are FREE to homeowners. We look forward to hearing from you.

Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states
0 votes Thank Flag Link Sun Jan 9, 2011
In order to best protect yourself and any other assets you may have, consider consulting with an attorney who specializes in real estate, he/she can best advise as it relates to your specific situation...
0 votes Thank Flag Link Sun Jan 9, 2011
It's possible, but not always going to happen. The best way to avoid that is to have an experienced Realtor, and third party negotiator working on your behalf. If you need the name of someone in your area, let me know. I'd be happy to help.

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0 votes Thank Flag Link Sun Jan 9, 2011
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