Knoxville Short Sale Question: How Do I Know If My Liability Is Released?

knoxvilleshortsalequestionsIn our Ask the Expert Section, we recently received a question from Zoey, she asks, "I'm about to finish a short sale on my Knoxville home. I'm concerned about what the overall outcome of the short sale will be. Once the short sale is approved, how will I know if my liability has been released?" There are many reasons to complete a Knoxville short sale. One large reason to do a short sale is to get a release of liability. This means that a lender is accepting less than is owed on a Knoxville home and agrees to release the remaining liability, which means the seller would not be pursued to a for a deficiency judgement. In many Knoxville short sales, it is possible to get a lender to release the seller from any liability. A short sale approval letter is what outlines how the debt will be treated after a Knoxville short sale, in most cases. There are some rare cases where a a Knoxville short sale approval letter doesn't address the issue at all. Prior to closing on a Knoxville short sale, it is important that you have a full understanding of what the approval letter contains. Should you have any questions, it can be helpful to obtain the advice of an attorney. If a lender will not release you from liability, you may be required to sign an promissory note, which requires you to pay a certain amount of the debt back. The payments are usually very affordable and sometimes even interest free. In many cases, Knoxville short sales do have a complete release of liability, but it does depend on the situation. A short sale is very worth completing since if you go through foreclosure you have absolutely not chance of release of liability. Are you facing foreclosure on your Knoxville home? Please let me know if there is anyway my team and I can help you, give us a call today at 865-696-9002 or via email at [email protected]. We've helped countless homeowners in Knoxville avoid foreclosure on their homes. All of our services are done at absolutely no cost to you.

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