I have a client who has a home in San Diego where the BPO's have come back at around 225k and was purchased in 2007 for 400k.220k from the 1st. and 80k from the second. This is a purchase money,non recourse loan and therefore the home has not been refinanced. Here is the response from USAA,
USAA Federal Savings Bank reviewed the request for a short sale offer on the above referenced property. USAA believes it is in its best interest to accept the offer of $10,000.00 from the closing proceeds and agrees to release its lien upon compliance with the following conditions: Lender/ Servicer will receive $10,000.00 in certified funds to be applied to loan #****** The seller shall not receive any proceeds resulting from the sale of this property. A copy of the signed final settlement statement must be included with the payoff check. Real estate commission can be no more than 5%. Any additional above and beyond $10,000.00 must be forwarded to USAA. USAA will pursue deficiency for any unpaid balance remaining on the account. This approval letter expires May 3, 2009. My client has agreed to all terms and the first is going to contribute 3k towards the 10k they're asking for. It is to my understanding that the 2007 Debt Foregivness Act is applicable here. My question is, can USAA "Pursue Deficiency For Any Unpaid Balance Remaining On The Account? Thank You, Kenny Bonilla