Lawsuits after a foreclosure

I spoke to an attorney last week who specializes in helping homeowners battle the banks after a foreclosure.  Here is a paraphrase of what he told me regarding lawsuits:

“Banks are heavily pursuing borrowers who foreclose on their properties and either A) don’t qualify for anti-deficiency protection; or B) aren’t safe because the debt was a HELOC or cash-out refi and was a jr or second lien.”

“In the event of a short sale, we are not at this time seeing banks pursue individuals who short sold their home, even if the bank still reserves the right to pursue any deficiency due to language in the approval letter.”

So in other words, it seems that banks are pursuing people who foreclose and still owe money in an attempt to minimize their losses but they are NOT at this time as actively pursuing people who short sell.

Every short sale and foreclosure situation is different but this is good news to hear!   Hopefully this trend will continue into the future as I feel we are going to be inundated with short sales for  the next few years.

Related posts:

1. Bank of America planning to proceed with foreclosures..
2. Fannie Mae Cracking down on Foreclosures!!
3. Short Sale Properties – Tough to postpone foreclosure
4. Arizona Anti Deficiency Law & How It Affects a Short Sale
5. SB 1271 Arizona Anti Deficiency Law Repealed!!!