Will The Bank Ask For Money?
This is a pretty common question from home owners that are afraid to a do a short sale. They are afraid that the bank will ask for money to complete the short sale. Some are also afraid that the bank will ask for money in other situations. Let’s cover the basics of the short sale and try to dispel these fears.
The lender cannot “TAKE” your money – This means they can’t touch your retirement, your bank accounts or the cash in your account. The “addendum” to this statement is that they can not take this stuff in a short sale situation. So where do you hear about this? In rare, very rare circumstances, the lender could pursue the deficiency through legal means, and how they do that varies by state by state.
In a foreclosure you are letting the bank have control [Note: Most foreclosures can be prevented, in fact, almost all can be prevented if the homeowner seeks help.] This includes their right to pursue you after the sale.