Upside Down Mortgage

Loss Mitigation Specialists

Question: Would a bank shortsale approval without signature be legally binding? ?

The first mortgage bank faxed over an approval letter to our realtor approving the sale of our house and mentioning that they will not go after me for the deficiency. I tried to get the loss mitigation specialist to sign it but she claims she does everything electronically and that the approval is good the way it is.

I had bad experience when I reached a settlement with my second mortgage. After I wired them the money for the settlement amount, they still sent me to collections and they applied the settlement wire to the balance and kept asking for the remaining balance. I had to fax the "signed" approval letter to the debt collector as well as other departments that were not aware of it. I am worried the same thing will happen with the first mortgage after the shortsale goes through and they would still seek a deficiency judgment.

If it is not legally binding, then would her emailing me the unsigned approval letter be sufficient??

Anyhelp would be appreciated.

Answer: I would recommend that you speak to a real estate lawyer. Short sales can become messy and confusing.

Meet Dawn - Loss Mitigation Specialist at Genworth

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