If I get a short sale approval, what are the potential liabilities in the future?

When a lender gives short sale approval, there are basically four possibilities for future liability.

The four possibilities are:

  1. The lender agrees to release the mortgage lien and to release the borrower from all future liability.
  2. The lender agrees to release the mortgage lien and to release the borrower from future liability in exchange for a cash contribution at closing.
  3. The lender agrees to release the mortgage lien and to release the borrower from future liability in exchange for a promissory note.
  4. The lender agrees to release the mortgage lien but retains its right to pursue the borrower for future liability either implicitly, by its silence, or explicitly.

Only when the prospective seller is presented with and understands their options should they make the decision to proceed with a short sale.

Download our free eBook "12 Things You Need to Know To Survive  a Short Sale" or contact us with your questions about a short sale approval.

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Serving Fort Myers, Cape Coral and Naples, Florida.

Winged Foot Tite, LLC is not associated with the government, and our [short sale orchestration] service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.