BankruptcyThe slow down of short sales has left many borrowers facing collection and suits for deficiencies that were not wiped out or waived in a short sale.  In a short sale, the bank agrees to accept less than the amount required to pay off your mortgage.  In the majority of the short sales, and when negotiated properly, the lender waives the deficiency  or the right to go after the borrower for the portion of the mortgage written off or forgiven.  In fact, short sales of primary residences require, under the Fair Debt Collection Practices Act, that all short sale lenders waive their deficiency and 1099-C penalties for the borrower.

What many borrowers and home owners do not know, is that the real estate attorney/title agent that is negotiating the short sale on your behalf, is responsible for negotiating these terms for you. And often, they are not knowledgeable on the law or do not know what is required of the lender.

Short sale approval letters that do not mention the waiver of deficiency or reserve the lender’s right to collect the balance, puts borrowers in jeopardy. The bank has one year to collect the balance and they are doing so more than ever. Particularly, Private Mortgage Insurance companies that have suffered tons of thousands of dollars in losses, paying off the lenders.

If you were the victim of a botched short sale, or have a collection company or lender trying to collect the deficiency against you, it is imperative that you seek the services and counsel of an attorney to represent you.  A lawsuit not answered may result in garnishment of wages, levying of assets and other manners for the bank to collect.

At the Law Offices of Jacqueline A. Salcines, P.A., Jacqueline Salcines, Esq. is both a real estate lawyer and accountant  with extensive experience negotiating sums due with lenders, often settling for pennies on the dollar.

Meet with our real estate attorney today and put us to work for you.  The first consultation is always free of charge.  Or email attorney Jacqueline Salcines directly your real estate question at J.Salcines@salcineslaw.com


Jacqueline A. Salcines

Jacqueline A. Salcines