What clause can I include in my short sale offers to the bank to ensure that the bank does not declare a deficiency and come after the homeowner for the difference btwn the actual amt owed and the SS settlment?
Thanks a bunch.
Include a line in your contract like the one below,
"subject to the lien holders agreeing not to pursue a deficiency judgment against the Sellers.”
FloridaInvestor suggested a good line to use. However, keep in mind that the lender does not care much about this contingency if you use it. When the lender approves the SS, they will send you or the HO a written approval with all of their terms. This is the document that will matter in the end. It certainly won’t hurt to use the suggested contingency in your contracts, and I certainly do (because it shows the HO that you are looking out for their interests, and helps you gain trust and rapport).
if they dont persue then they will usually 1099 them