Will I Still Owe the Bank Money If I Do A Short Sale?
By Tni LeBlanc, Realtor®, J.D., Tenacious Tni (805) 878-9879
(Mint Properties, Lic. #01871795)
Will I Still Owe the Bank Money If I Do A Short Sale?If you have one mortgage loan on your California home the answer is no. Senate Bill 931 allows that after January 1, 2011, if a lender on a first mortgage accepts a short sale, they are agreeing to waive the deficiency amount. So, if they approve the short sale and it closes, you will not owe your lender any additional money, even though you have not paid back the entire loan balance. In fact, in my opinion, that is the entire goal of a short sale. You definitely should discuss the impact of Senate Bill 931 with your attorney when considering a short sale. If you have two mortgage loans, the issue of whether you will continue to owe the second mortgage lender money is negotiable. The goal of the short sale negotiation is to obta...