If you are a home owner in the middle of doing a short sale with your lender, make sure you read the fine print.  Just because your lender signs off on the short sale doesn't mean you are always off the hook.  Some lenders are establishing a policy that the home owner may still be liable for the unpaid debt even after the house is sold.  Lenders are either making the home owner sign at closing that they will pay the difference between the amount owed and the sold price or reserving the right to sue the home owner for 6 years after the close.  Translation - read the fine print of the contract that the bank sends you, then read it again, then take it to an attorney to read and strike any legal phrasing that gives the bank the right to come after you or leaves you liable for the debt.  If the bank refuses to accept this change then it is up to you at that point if you wish to proceed being fully aware of the consequences that may occur.

 

I am a real estate agent, but please know that a real estate agent is not allowed to practice law.  Agents are allowed to help you find a home, sell a home, market a home, put together basic contracts and follow the transaction through.  When it comes down to interpreting law or writing legal contracts this is an attorneys job.  Pay for an attorneys time to make sure you are protected if / when anything is outside of a standard contract.  It will be the best insurance policy you can buy.  Lesson of the day - read the fine print!