When the attorney who is negotiating your short sale receives the "short sale approval letter", initially, it will probably not include a waiver of deficiency - meaning that the lender will agree to allow you to sell your property but does not waive the ability to seek to collect the deficiency from you in the future.
If the lender agrees to waive the deficiency, you need to get that express waiver of deficiency in the short sale approval letter. You need to instruct your attorney that he or she is to negotiate for a waiver of deficiency and not just a release of the mortgage and to be sure that the waiver of deficiency is included in the short sale approval letter.
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Banks do not have to forgive the debt after a short sale. They have five years to seek a deficiency judgment after the short sale. Some banks, however, are willing to waive their rights to a deficiency in conjunction with the short sale. There is no uniformity in the way that banks treat short sales. If you are unsure of the impact that the short sale will have on you, you should contact an experienced real estate lawyer in your area.
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Your are welcome. It has to be part of the agreement for them to not seek a deficiency judgment. Unless it is in writing, they could come later for a deficiency judgment. If you have a foreclosure defense or real estate attorney have them look into it. If you don't have one you may want to retain/engage an attorney to try and negotiate that for you. They mortgagee to whom you owe debt may go for it, and they may not, but you won't know until you try.Ask a similar question