Short Sale Question?

**veronica1002** · 08-30-2010, 08:30 AM

After the short sale process is over and closed, can a bank still come after the seller for the deficiency? Is this different in each state?

**Jonathan Radford** · 09-03-2010, 01:35 PM

No. In order to make a short sale work, the bank has to agree to release all liens against the house and relinquish any claims against you for this mortgage. That is the the point of a short sale - otherwise you would just sell the house normally. By doing so the bank gives up any right to come after you for the rest of the money. Hope that helps.

**jason_simpson** · 09-04-2010, 01:04 AM

The unpaid loan balance after a short sale will most likely result in a 1099C. By issuing you a 1099, your bank gets an immediate tax benefit from a short sale. The 1099 your bank sends you after a short sale can register as income, which may result in you owing taxes. However, there are many exceptions that exclude canceled debt for tax purposes, so a 1099 may not adversely affect you. You should speak with a competent accountant for advice on the financial consequences of a 1099.

**REman** · 09-07-2010, 08:55 AM

I'm pretty sure that a short sale by definition is that the bank agreed to accept less money then you owe them. Banks agree to this because it is a lot easier then going through the foreclosure process.

**TeamAguilar** · 09-08-2010, 03:11 AM

Originally Posted by veronica1002

After the short sale process is over and closed, can a bank still come after the seller for the deficiency? Is this different in each state?

No bank acnnot come after you asking money.
It is the same in all states.
You have any discrepencies?did you know any instance where bank didn't follow it and came back asking seller for more money?