“We have many clients, both buyers and sellers, who are very confused about what happens in short sale or foreclosure situation. Many people believe that if their home is sold for less than their bank note the difference is forgiven. This article from cnnmoney.com does a great job of explaining how this may not be the case.
Lenders have a great deal of options to pursue borrowers and they don’t need to pursue them right away. It should be noted that South Carolina is a state where lenders can pursue deficiencies. It is extremely important that a person makes sure they have a release from the bank from any further obligation. Borrowers should seek legal advice in any short sale or foreclosure situation. The most important point in this article is that a borrower not ignore the possibility of deficiencies and they consult with their lender, legal counsel and realtor for the most protection.”
Read the full article.
William Means Sales Manager – East Cooper BIC