Unfortunately, another good example of people trying to beat the system and benefit from this advantage. One would hope that, once brought to their attention, trulia will see their way to do what is right...........
You seem to be on the mark...we'll be watching to see the results of your insight and willingness to share important concerns.
Jack if you do not have an answer from your bank on how they are going to deal with the deficiency how do you know that they will report the debt satisfied? They may ask you to sign a personal loan for the deficiency amount. They may release the lien on the property and pursue a judgement against you. If they provide a 1099 at year end on the defient balance you need to check with an accountant now to understand the tax implication of debt forgivness on a property that is not you primary residence.
Yes this is becoming more normal for the lender to wait until the last minutue to let you know how they are going to treat your deficiency to give you very little time to investigate the repurcussions of signing what they want you sign.... more
Jack you should speak with the person negotiating your short sale as these are issues that should always be addressed as part of the negotiations how the lender will report the sale on your credit report and what will become of the short fall. In deed you will want to make sure the debt is forgiven soyou are not always wondering if the bank or a collector will come calling in the next 7 years. The way they report the sale will affect your ability to purchase again in the future and the rate you will pay from cars to credit cards. Good luck in working things out..... more