Hi Everyone,
Here’s the follow up from today’s class:
Q: What is the name of the clause in the final short sale seller paperwork that describes a lender’s power to pursue the homeowner for the amount forgiven at closing?
A: This has been referred to as the ‘deficiency clause’ and ‘payment in full without pursuit of any deficiency.’ Here is an example of how it might read. Please realize that different lender paperwork will contain different verbiage:
“WaMu reserves the right to pursue collection of the remaining balance due on the promissory note for loan number XXXXXXX.”
Here is the link to the Making Home Affordable website that will show you how to determine if a mortgage loan is being held by Fannie Mae.
Here is a great article on “Predatory Lending” that provides a basic overview.
Here is the Idaho Statute teaching us that yes, a “notice of default” IS a recorded document in the state of Idaho. See paragraph (2).
Thanks for coming to class this morning!