Legal Question in Real Estate Law in Florida

real estate short sale

The seller wants to include a clause in the contract that states: The sale of the property will be considered full satifaction of the mortagage. The bank will not seek a deficiency judgement against seller or buyer and will report the mortage as paid in full and satisfied. Should this be part of the sales agreement or worked out between the seller and the mtg. holder? IS there any harm in the buyer signing a contract with this agreement in it?


Asked on 9/17/08, 1:43 pm

1 Answer from Attorneys
Brent Rose The Orsini & Rose Law Firm

Re: real estate short sale

Sellers on short sales are often worried about receiving 1099s and deficiency judgments from the bank when they sell real estate. That's probably what's going on here, and it probably doesn't affect you. You can probably safely sign, though it may diminish the chance that the bank or the mortgage insurer will accept the deal. Still, you should sit down with a real estate attorney and have him or her review the entire clause before you sign.

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Answered on 9/17/08, 11:38 pm


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