Broker Associate, RE/MAX Real Estate Consultants
1 year ago
Nathan - I can only comment on California as it relates to foreclosures. If the transaction is a short sale, then the bank agrees to take a certain amount. Once in agreement, they'll issue a SSA (Short Sale Approval) letter. Once the transaction is completed, the seller (owner) is off-the-hook for any remaining balance. A new law in California prohibits a lender from going after the owner for any additional monies inclusing payments the bank has made for insurance or property tax. A foreclosure is a bit different from bank to bank.