Short Sale Deficiency: I am seeing more and more transactions which involve a short sale. In negotiating the approval from the lenders, you should try to include an agreement that the lender will not report the short sale to any credit reporting agencies. (This may not be as important if the seller is already seriously delinquent with their mortgage payments.) More important however is to try to negotiate that any deficiency is “without recourse.” This is perhaps one of the most important considerations to the seller who has already lost a lot. Please call me if you have any questions.
William D. Tucker, III
Tucker Griffin Barnes P.C.