We live in WA a non recourse state. I have closed about 200 short sales and usually I am able to get the deficiency rights waived on the short sales before my client moves forward. But I have a IndyMac/OneWest Bank short sale that got the following veribage in the letter. The negotiator said the following when I asked for the deficiency rights to be waived
FNMA, the investor will retain all deficiency rights available based on your state regulations/laws and we cannot 'Waive' deficiency rights nor provide any documentation stating that the investor's rights will be waived, as it will be based on the laws of your state.
The below is the verbiage from the letter...
13. The borrower must sign the attached acknowledgement to all terms specified in this approval and
must acknowledge that Indymac Mortgage Services retains all deficiency rights as provided by the
note, deed of trust and/or security agreement in accordance with local and federal laws.
But then at the bottom of the letter it says...
If all conditions are followed the property/borrower(s) will be released from this lien. OWB will report a
Special Comment Code of “AU: Account paid in full for less than the full balance” to the credit repositories for
both the 1 st and 2nd loans referenced on this Approval Letter. Please note, however, that credit bureau reports may also show the current delinquency status up to “180+ days delinquent” which will also beincluded in the file that will be reported to the repositories.
My question is can they report the loan paid in full and still come after them, in a non recourse state. This is the 1st lien holder only and there is not a 2nd mortgage. Thanks for your input. =)
Is the loan purchase money or a refinanced loan?