Yet another reason to get legal advice or speak to a real estate attorney. One of the main reasons to do a short sale is to get a release of personal liability. Not every seller or every mortgage is released. Different states have different guidelines regarding the deficiency balance. In the state of Oregon, generally, a lender cannot pursue for a deficiency judgment on loans taken out to purchase a property. Most Home Equity Lines of Credit are not secured to your home and could be personally backed by you. This means that foreclosure will not eliminate this debt. NW HomeSavers will negotiate additional liens and push for full debt forgiveness.
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