When a homeowner short sells their home they usually do not receive enough money in the sale to pay off the remaining balance on their mortgage. Therefore, the homeowner will usually still owe money to the lender after they sign over the check for the sale of the home. The only way to have the excess amount owed forgiven by the lender is to have them sign a waiver of a deficiency judgment. In order for the lender to waive your deficiency judgment, you must get the lender to agree to this waiver in writing prior to the short sale.
Sometimes the lenders orally agree to a waiver of a deficiency judgment but will deny it after the short sale has taken place. In other cases the homeowner just assumes that since the lender told them that they could short sell the home that the lender is forgiving any excess amount owed after the sale. That is not the case unless the lender has signed a waiver of a deficiency judgment. Do not make this mistake. If you are considering a short sale on your home, contact a Florida Foreclosure Defense Lawyer or Jacksonville Foreclosure Defense Lawyer to review your agreement so that you do not have suprises later like a deficiency judgment waived by your lender.
