Shortsale on 2nd home in Fl. 2nd Lien Holder offered a settlement. Am I still exposed to additional collections?

Asked over 1 year ago - Winter Garden, FL

Orig debt 45k. Lien holder says:" LCS on behalf of 'Bank' has agreed to a sale on the above referenced property and agrees to accept no less than 5000 as a settlement and satisfaction of the lien and debt owed"

Can they still go after the deficiency? Do I need to ask for additional conditions?

Attorney answers (2)

  1. Sheryl Ann Edwards

    Pro

    Contributor Level 12

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    Answered . I would certainly like to see better language in your short sale approval letter like " Bank agrees to accept no less than $5,000 as a settlement in full satisfaction of the debt and agrees to waive the right to pursue any deficiency balance". You should ask them to include similar language to "waive the right to pursue any deficiency balance."

    This information is being provided for informational purposes only and is not to be taken as legal advice or to... more
  2. Joshua Eli Adams

    Contributor Level 14

    1

    Lawyer agrees

    Answered . The language in the final settlement should include language that the amount of the short sale represent a full settlement of the debt.

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