BORROWER ACKNOWLEDGMENT LETTER - urgently need help!

Hi All,

Has anyone else received a Borrower Acknowledgment Letter with their Chase short sale approval?  This is the second time I've gotten one that the borrower needs to sign and it states :  "By signing below, the debtor acknowledges that he/she remains liable for any amount still owed under the first lien mortgage transaction."  To me, this is no different than the approval letter where they do not waive the deficiency, but seller is hesitant to sign if it means she's giving Chase carte blanche to sue her for the deficiency.  BTW, both of these letters were sent with Freddie Mac loans and from what I have been told repeatedly by Chase, Freddie Mac does not pursue deficiency balances except in cases of fraud.  I advised the seller to get legal advice  but she has no money for this.  What do you'all think?  

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Replies to This Discussion

Permalink Reply by Donna McClelland on December 2, 2011 at 7:44am

UPDATE - I was able to speak with my negotiator at Chase today and asked why this letter was included in the package and if we could close without it.  She said it was because the property is vacant.  I explained that the only reason the property is vacant is because we were supposed to close on 10.12 (so the seller moved out), but then the buyer couldn't qualify for their loan and had to cancel.  Chase requested a letter from the seller stating this and we may be able to get the deficiency removed entirely!  I was not aware that deficiency waivers on certain loans were dependent on whether or not the property is owner occupied.  I learn something new every day in this job!

Permalink Reply by Richard Zaretsky on December 4, 2011 at 5:13pm

I hear all the time that "we don't go after someone unless..... (and then some reason)." 

The truth is that the lender is not CURRENTLY pursuing that type of deficiency - but they retain the right to change their mind, their policy, their rules, their regulations, their underwear! The end result is that the liability is out there and not going away unless there is definitive language and actions that waive or prevent the lender from pursuing the deficiency before the statute of limitations to do so expires.

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