shortsale conclusion

[deanna]

we have just completed the shortsale -

however, according to the lender - it will report as

Settled for less than full balance


How does this affecting our credit ?
does this mean they can go after us for the deficiency?

On the shortsale approval, they have approved us for the borrower contribution of 1K ,
and there was no promising note to sign at the closing..

please advice ..thank you

[LHarveyMadman]

The reporting of the short sale is going to have a tremendous negative effect on your credit score. It could drop your score by 100 points or more.

If you negotiated the short sale with your lender, then they shouldn't go after you for the deficiency. However, you should check your documents carefully and review the laws in your state.