short sale approval letter from Nationstar - unclear about deficiency

[windnwaves]

I am short selling multiple properties and wanted to share the verbiage in the short sale approval letter from Nationstar for those who are interested. It is not explicit about whether there is a risk of a deficiency judgment.

It reads:

"Nationstar Mortgage agrees (1) file a withdrawal of the Notice, and (2) provide any documents necessary for release after we receive the funds. No funds are to be released to the borrower.

The attached promissory note will need to be executed and forwarded to Nationstar and the original to United Guaranty Insurance Corporation with the net proceeds along with a copy of the final settlement statement.

Please be advised that if a foreclosure sale is pending, the foreclosure sale date will not be postponed to allow this short sale closing."

The Note includes this verbiage:

"For value received, and in order to settle a claim against me for money owed, the undersigned ("Maker") promises to pay United Guaranty Residential Insurace Company, or order the principal sum of xxxxx."

Although there is not explicit verbiage about no deficiency judgment, I think that the note stating "in order to settle a claim against me for money owed" indicates that the short sale will settle the debt.

The negotiator at Nationstar did email that (1) it will report on the credit report essentially as paid in full and (2) they will not issue me a 1099. I was surprised by #2 and won't be surprised if there is a 1099 after all is said and done.

I feel safer in a way taking a Note with the short sale because I think it makes it extremely unlikely that the lender, PMI company, or investor will pursue a deficiency or could successfully make the case that they can.

One thing I am wondering about is whether the PMI companies that are holding these notes have the capacity to report them on a credit report. The Note presented to me by Nationstar for the PMI company as well as a Note presented to me by National City for their PMI company for a separate short sale did not include a place for me to write in my social security number. This makes me wonder whether PMI companies have the capability of reporting these Notes on a credit report. What's the experience been with folks who have taken a Note as part of a short sale. Is it reporting on your credit report?