In a follow up to the short sale series of articles that ran for the month of April’ I wanted to point out a major factor many are not aware of:. Make sure that if you are doing a short sale on your residence that the acceptance letter from the lender does state a release of further liability on the property.
You may get a 1099C when you complete the sale. However if there is no release of further liability the Lender can still come back to you after the fact. This should all be worked out with the negotiations when the short sale is approved by the lender.