The Real Deal Miami

Short sales causing homeowner problems

April 27, 2009 02:10PM

In
short sales contracts, some lenders are putting in clauses that allow
them to sue for
the amount lost in the sales. Attorneys say it’s not clear how
many short sales
fail to protect former homeowners from being sued, and that the clauses
mean lenders can sue the borrower at a later date, or turn
over the unpaid debt to collectors after the short sale. In addition,
national credit scoring firms say short sales and foreclosures are
equally damaging to credit scores.