If I’m moving because of a job change but I’m upside down on house and considering a deed in lieu, can the bank sue for their loss?
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If I’m moving because of a job change but I’m upside down on house and considering a deed in lieu, can the bank sue for their loss?
Asked on January 16, 2012 under Real Estate Law, Washington
Answers:
Sanford M. Martin / SANFORD M. MARTIN, P.A.
Answered 12 years ago | Contributor
Usually, an agreement between bank and owner to
agree to a deed in lieu involve an agreement which
governs such provisions as subsequent legal actions
of either party. If you desire to avoid any lawsuit
by the bank claiming a deficiency judgment, or
loss on sale of the property, you should insist
that the agreement for the deed in lieu shall
prohibit such claims. Most agreements for
either short sales or deeds in lieu assure the
owner that such subsequent deficiency judgments
or related claims for losses on the mortgage debt
will not be permitted. Otherwise, the benefits from a deed in lieu are extremely limited.
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