We’ve been noticing recently in many of the real estate agent ads and Web Sites, claims by agents to special expertise in negotiating short sales and deeds in lieu of foreclosure with lenders on behalf of their buyer and seller clients. Various “Certifications” in such negotiation expertise are out there and are being touted by the agent community.
The Baltimore Sun had an article today on the subject highlighting the risks to sellers of not being property represented when negotiating a lender short sale or deed-in-lieu sale settlement with their lender:
“Indeed, in Maryland and the majority of states, walking away is no guarantee that mortgage debt won’t come back to haunt you. These are so-called recourse states, where a lender can pursue you for any shortfall after it sells the house. So if you walk away from a $400,000 mortgage and the lender turns around and sells the house for $300,000, you can still be on the hook for $100,000.
In Maryland, lenders generally can come after you for up to three years to collect. And that time period could be as long as 12 years under certain contracts, says Phillip Robinson, executive director of Civil Justice Inc., a nonprofit legal services agency in Baltimore that assists residents statewide.
Some homeowners might consider a short sale, where you and a prospective buyer get the bank to agree to accept less than what’s owed. Make sure you have a lawyer or housing counselor to represent you in talks with the bank or loan servicer, Norton says. These experts can negotiate a deal so you won’t be responsible for the unpaid balance.
Beware, some real estate agents market themselves as short sale experts, but then fail to negotiate with the bank for any forgiveness of debt, says Tony DePastina, a litigation attorney with Civil Justice. Once you get your finances back in order, the lender could come back after you to collect the unpaid debt, he says.”
Maryland IS a “recourse state.” Save yourself a lot of grief, and have a lawyer involved on your behalf. Preferably, find a good real estate lawyer well versed in the nuances of short sales, foreclosures and deficiency judgments.
The full article –
http://www.baltimoresun.com/business/money/bal-ambrose0329,0,6721506.story
