Hello, I just got a SS approval on a HELOC from Wells Fargo, in the conditions it states- "Borrower agrees to waive any non bankruptcy anti-deficiency or other law or regulation that might otherwise limit or prohibit their continuing obligation to Wells Fargo for the amount of the short fall referenced above." Does this mean that the Seller can not include her Wells Fargo debt when she eventually files for bankruptcy?

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This is a question that the borrower needs to ask their attorney.

Believe me, I know. but she doesn't have the $! I was hoping a legal mind would answer me on this site. Thanks Bryant

Interesting.  How can you waive a LAW though?  Doesn't California have a law that the lender cannot go after a homeowner for deficiency?  How do you waive a law?

At least they tried... let's see if it will hold up in court.

Hi Smitty, the property is in FL, not in CA... I think that people unwittingly fore-go their legal rights all the time. I was looking for someone to weigh in with a legal interpretation of the WF statement.

It sounds purposefully ambiguous.  The letter states it would NOT apply to bankrupcty law (non) and that is does or does not apply to "other laws".  It sounds like a legal fishing net that is full of holes.  Your client could check in to getting a free consultation with a bankruptcy attorney.  A real estate attorney that practices foreclosure law would be the one to decode the SS approval letter.

Yes.  client definitely needs to speak with an attorney, but my bankruptcy attorney stated this regarding the language:

"They cannot use a context to have some one waive their rights"

Not sure that the language means anything.

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