What gives when Chase calls you to offer a short sale?

We recently received this comment from a reader:

Hello, I have a property which was a 2nd home. My brother-in-law and I bought it 7 years ago in Nevada. A few years back I started covering my brother-in-laws share. I’am about six months unpaid and presently the property is in foreclosure. I have sent no paper-work as request since it is biased. Well around 2-months ago during the foreclosure I got a call from a Chase rep. on a Sat. morn. stating that I qualfied for a short-sell. He asked me if I wanted to proceed and to select from a list of real estate brokers they have used in the area or if I had an agent. I said I have a real estate agent and set a conference call between the rep, agent, and I. We just had an offer and I accpeted, though now they want me to sign my life away. The document they sent me is called a request for consideration of Short sell? They requested the and even set-up the short sell to me, and they offered me a 25.000.00 check upon closing with no forbearance. Have you heard of people not giving any paperwork and going this far?  This is very misleading! Should I get a lawyer?

Here is my advice:

Get a lawyer!  Chase is a sneaky bank and it is more likely than not that this will benefit them somehow.

For one, Nevada appears to be a state that allows for a deficiency judgement, which means that they can go after you for the amount you ow in excess of that paid on the loan through the short sale.  California by comparison is a state where you can not be held liable for additional debt as a result of a short sale or foreclosure.

Until Chase either forecloses or the property is sold, they can’t do anything to go after you for the unpaid loan balance.  For agreeing to a short sale, you allow them to move forward on obtaining a deficiency judgement and going after more of your assets.

Furthermore, Nevada appears to be a one-action recourse state, which means that they can either foreclose on your property, or sue you to recover the unpaid debt, but not both.  By agreeing to the short sale, you are allowing them to sue you for the unpaid debt whereas otherwise they would not be able to if they foreclosed on the property.

Let me repeat my first remark – get a lawyer, preferably one familiar with Nevada law.

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