After a short sale can the bank come after you for the difference? 9 Answers as of September 28, 2012

Sold my house in a short sale in 2010 now I'm getting letters from collection agency trying to collect on the difference.

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Law Office of D.L. Drain, P.A.
Law Office of D.L. Drain, P.A. | Diane L. Drain
It depends on the short sale agreement. Most people do not understand that they are signing a contract to pay money as part of the short sale.
Answer Applies to: Arizona
Replied: 9/28/2012
STASCH LAW LLC | Sarah Stasch
Your short sale should have negotiated a waiver of the deficiency. If it did not, yes, they can. Did you have an attorney or a realtor handling the short sale? This should have been explained to you or negotiated. If I knew which lender, I could guestimate whether they will actively pursue.
Answer Applies to: Washington
Replied: 9/28/2012
Victor Varga | Victor Varga
Not usually, should have issued you a 1099 for the difference. Must be a mistake. Contact the bank.
Answer Applies to: Maryland
Replied: 9/28/2012
R. Jason de Groot, P.A
R. Jason de Groot, P.A | R. Jason de Groot
Yes, this is of course one of the problems of having a short sale, unless the bank in writing waives the deficiency balance.
Answer Applies to: Florida
Replied: 9/28/2012
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Yes they can, the lender will normally either waive any deficiency in the payoff letter or they can put language that they will pursue a deficiency.
Answer Applies to: New York
Replied: 9/28/2012
    Peacock Law Group of the Lowcountry, LLC | Richard Peacock
    In SC, there are quite a few details that are missing from this statement of facts to be able to fully answer your question. However, it sounds like the bank may have somehow gotten a judgment against you for the deficiency between the short sale price and what you owed on it. Also, it would need to be known if this was truly as a result of a short sale? You should contact a local attorney to discuss this matter.
    Answer Applies to: South Carolina
    Replied: 9/28/2012
    Law Office of Bijal Jani | Bijal Jani
    There are circumstances in which if the short sale was not negotiated properly with the bank and the bank retained the right to secure a deficiency judgment against you even after the short sale, yes the lender may try to seek a judgment for the difference. You should consult with an experienced attorney regarding this matter to prevent this action from going further.
    Answer Applies to: New York
    Replied: 9/28/2012
    Richard M. Gee, a PC
    Richard M. Gee, a PC | Richard M. Gee
    Yes, in Colorado, if you did not have an agreement to waive the deficiency.
    Answer Applies to: Colorado
    Replied: 9/28/2012
    Frank Law Group, P.C.
    Frank Law Group, P.C. | David E. Frank
    Not in CA. It's strictly prohibited.
    Answer Applies to: California
    Replied: 9/28/2012
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