short sales

You can view this entire article at www.loansafe.org. This information is critical for people who are in danger of loosing their home. This will be welcome news to anyone that is in these particular states. I feel that this information can definitely be of assistance to anyone who is working in the foreclosure arena.

When sellers agree to do a short sale they are not always released from their financial obligations on the short pay off. Sellers can be held liable for a deficiency. In some states the bank can't pursue the seller for a deficiency - These anti-deficiency states do generally only protect people and their primary residences. In a non-recourse mortgage state, borrowers are not held personally liable for more than the home’s value at the time that the loan is repaid. The lender may recoup some of its loss through foreclosure. However, the lender may not sue the borrower for additional funds. If the foreclosure sale does not generate enough money to satisfy the loan, the lender must accept the loss. Here is a list of these states:

Alaska

Arizona

California

Connecticut

Florida

Idaho

Minnesota

North Carolina

North Dakota

Texas

Utah

Washington

Please ensure that you check with the state statutes to see if you qualify for this program. I hope that this information helps!