Legal Question in Real Estate Law in Nevada

Short Sales

Hi,

I have a property in Nevada and I just received an approval letter from Countrywide on a short sale. However, the letter states that they will reserve the right to pursue me for the deficiency. Apparently, this is something Cwide starting doing a couple months ago to protect MI companies and investors. I believe Nevada is a non-judicial state. If I let them foreclose, they can't pursue me for the deficiency. But, if I agree to the short sale, does that mean now they CAN pursue me? Thanks for your help!


Asked on 3/19/09, 11:53 am

2 Answers from Attorneys
mark albright albright stoddard warnick & albright

Re: Short Sales

You are correct that Nevada is a non-judicial "trust deed" state. If Countrywide does foreclose they DO have 6 months from the date of the trustee's sale to file an action to collect any deficiency - the difference between the sales price and the total owed them on the date of the sale.

You might want to make a counter offer asking that they accept the short sale and forgive the deficiency through their approval letter.

Spencer Judd, Esq.

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Answered on 3/19/09, 12:02 pm
Jonathan Reed Reed & Mansfield

Re: Short Sales

I believe they can pursue you for a deficiency judgment. It sounds like their approval of a short sale only lets the buyer get good title. It doesn't really do anything for you.

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Answered on 3/19/09, 1:28 pm


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