August 10, 2009

Short Sale Continued Collection

Filed under: Collections,Foreclosure,Short Sale

With regards to short sales, what are the stats on the delinquency amounts being sought after. Are banks filing against the sellers? Is the government going after unpaid amounts?

Any help would be greatly appreciated.

Justin

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Hello Justin,

I am not aware of any stats on delinquency amounts being sought.  Anecdotal accounts of borrowers writing in to the Broken Credit Blog indicate that second mortgages frequently continue collection and of course if state law permits then expect any mortgage foreclosed to continue to haunt the borrower down the road.

Unlike foreclosure, a short sale provides a borrower the means to negotiate away any deficiency.

Read: I’ll Estoppel If You’ll Estoppel

Thanks for the questions and hope this helps.

Paul

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