I just received a letter from Chase stating that they have approved the request for a short sale. However this was in bold print:
Please note this amount is for the release of the lien(s) only and that you are responsible for all deficiency balances per the terms of the original loan documents.
I am uncomfortable with the deficiency clause in the approval letter but my real estate agent said that it is standard verbiage and the bank won't remove it. Do other short sellers usually agree to this? I am tempted to tell my agent that this is a deal breaker and let it go to foreclosure. Seems that the likelihood of getting that clause removed is very slim. I would rather have everything related to this house be settled all right now rather than have a deficiency linger over me.
We are still waiting for the 2nd lienholder to approve the sale. It was originally with Chase as well but they recently discharged the debt to a collections agency.
If I contacted a lawyer, would they be able to negotiate to get the terms changed or would they simply advise me not to sign? I don't want to spend money for someone to tell me something I already know.
By the way, I am in CA and there was a NOD filed on the property in February. I have not received a NOS yet.