Legal Question in Real Estate Law in Arizona
I am in the process of completing a short sale transaction and the lender (B of A) is requesting that we sign a promissory note in the balance of $0. They wouldn't add in the approval letter to release us from any and all deficiency so this was what they could offer. If I sign the promissory note are they legally able to pursue us for the deficiency at a later time even though they wouldn't include the release?
1 Answer from Attorneys
Sorry to hear about your troubles, but yes, in the absence of a release on the first note the bank could seek a deficiency judgment against you. The second note is just a gimmick, but in fact may help you. You should obtain counsel before proceeding into a trap.
I won a case against a bank on this very issue on behalf of my client short seller, but there is no case law currently protecting you.
Please contact my office via my website at www.CleverLegal.com to discuss your options. Your issue may be time-sensitive and may result in loss of rights if you do not act in time. Thank you.
Disclaimer: This answer does not create an attorney-client relationship and is for informational purposes only. It is not, nor is it intended to be, legal advice and you should not rely upon it as more specificity in a consultation may reveal facts or other information which could change the result. You should consult an attorney for legal advice addressed to your individual situation.
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