Posted on: 17th Jul, 2010 12:06 pm
The bank has agreed to accept a short sale for my property. One of the statements is as follows; "The bank will release its security interest in the property being sold, they will not release me from liability for the repayment of the remaining balance that is owed to them." THey have not asked for a promissary note or any other collateral? How does this work, do they now come after all of my other assests,etc.
Letter also states the loan is to be reported as settled, loan paid in full for less than the full balance to the appropriate credit repositories. What does this mean? Thank you
Letter also states the loan is to be reported as settled, loan paid in full for less than the full balance to the appropriate credit repositories. What does this mean? Thank you
The statement mentioned in the short sale agreement makes you liable for the deficient balance resulting from the sale of the property though you haven't signed a promissory note. If you're unable to pay off the deficient balance resulting from the sale, then the lender can come after your other assets to recover his dues. The lender will report the loan account to the credit bureaus as settled, loan paid in full for less than the full balance depending upon whether or not you pay off the loan balance.