Can a deficiency judgment be pursued on an HAFA short sale?
I just closed a short sale in WA. I have an FHA loan with a lender that approved my sale under HAFA (Home Affordable Mortgage Alternatives) but the sale agreement is silent with respect to deficiency judgements. I feel protected in 2 ways so that I will not be pursued regarding a deficiency: 1) having only 1 loan in a non-recourse state, and 2) HAFA short sales provide that lenders cannot pursue deficiencies. Should I still feel at risk with the silence on deficiency judgment in my short sale agreemnt? I was on working visa and when I lost my job I had to leave the country but I just want to do things right.
You should be fine. If you have anti-deficiency statute in your state, lenders can seek the deficiency against you. Further, since HAFA, any monies that are foregiven are not to be sent to you as a 1099 so that you don't have to claim it as income on your taxes. If you fear that somehow the silence in the contract will not protect you, and if you have yet to sign the agreement, consider asking the lender to update the provision as a counter-offer and then if the lender approves, sign the newly written HAFA.