Good day Jim,
This is entirely up to the Investor. As I complete short sales, the common investors become very predictable. Work with your Realtor and ask them what is typical for your investor to do.
We have not seen a large amount of this happening. Mostly because the MI company comes in and pays the Investor after the sale. The real Issue is "Will the MI Company go after the Borrower". In Nevada, on a 1st mortgage, the Borrower only has to sweat it out for 6 months. After that, the Borrower cannot be held for the deficiency UNLESS MORTGAGE FRAUD IS SUSPECTED !!!!!
A 2nd has 6 years to file and 20 years to collect.
The 1st also has this option if the mortgage funds were not used to purchase the home as in a refi. There is a lot of fine print to the Deficiency Forgiveness laws. Chat with your CPA for details.
Huh, what did he type??????? If Mortgage Fraud is involved, there is no statute of limitations. What is Mortgage Fraud? Hiding funds so the Mortgagee thinks you cannot make payments, moving the title to another person without permission of the Mortgagee, Buy and Bail before the foreclosure, selling outside of an arm's length transaction, as well as entire host of other reasons.
My crystal ball says we will not see much of it immediately. Just wait until the attorneys have little to do. They will research every foreclosure with a really fine comb to shown some type of fraud. Then it is Borrower beware.
Let's revisit this topic in a few years and see if my crystal ball was correct. I'll give it 4-5 years to allow time for the lawsuits to begin.
That is the reason that it is imperative that a borrower work with a skilled Realtor to negotiate a successful short sale that will close and is complete with no ill future effects and surprises.
Please contact me immediately if you know a person that cannot make their mortgage payments. I will work with them to avoid foreclosure or bankruptcy at no charge or fees to them.
Steven Goldman, CRS
Certified Short Sale Professional (CSP)
GRI, ABR, SRES, CNHS, PM, CCI
Realty One Group
Las Vegas, NV 89135
Web Site: http://www.teamgoldman.info