Home Selling in Miami Beach>Question Details

Sandy, Home Seller in Miami Shores, FL

If i do a short sale, can they come after my assets 2-3 years after the sale, if i have some savings by then?

Asked by Sandy, Miami Shores, FL Thu Feb 11, 2010

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6
Yes, they can. You should pay the little extra money to have an attorney review your final release "before" you attend closing. The lenders will release the mortgage from the property but not always release you from the Note and they can come after you.
0 votes Thank Flag Link Fri Feb 12, 2010
Sarah
One of the advantages of doing the short sales is to make sure that the bank releases you from all obligations to your loan. This is key that your realtor gets the release!!!!!! The bank(s) will file a 1099 on the amount they lost but there is the debt forgiveness act so check with your CPA to make sure you are under the cap of the debt forgiveness amount.

Good Luck!
0 votes Thank Flag Link Thu Feb 11, 2010
It depends on if your state is a recourse or non recourse state and or if your loan is a recourse or non recourse loan.

If you have a recourse loan or are in a recouse state, then it is possible that the bank could come back at a later date for the deficiency amount.

To protect yourself from this, you need to have your attorney make sure that they have the bank sign off on any recourse at a later date.
0 votes Thank Flag Link Thu Feb 11, 2010
I would also consult an attorney. My clients that have done short sales have recieved a letter from the lender saying that they will not be charged a deficiency judgement. I always recommend that they consult an attorney as well.
0 votes Thank Flag Link Thu Feb 11, 2010
Protect yourself, do speak to an attorney soon.
0 votes Thank Flag Link Thu Feb 11, 2010
Sarah

Before I would finish up a short sale I would consult with my attorney to make sure that all the correct procedures are completed.

Jerry A. Lorenz
Russell Realtors
Cell: 440 724 4402
Blog: http://jerrysrealestateblog.blogspot.com
Web Reference: http://www.lorenz-543.com
0 votes Thank Flag Link Thu Feb 11, 2010
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