Both the pre-foreclosure sale and short sale exist to allow a Florida homeowner, like you, to sell his or her home for an amount that is considerably less than what is remaining due.
If the approved short sale is well-structured, the bank will choose to forgive the full remainder still due after the property sale is finalized. There are certain approved short sale agreements that do not address balances or they are drafted in such a way that keeps you on the hook for the remainder of the balance. If the financial institution has included verbiage like “has agreed to accept a short payoff” or “will waive right to pursue collection” but they keep reporting the balance to the major credit bureaus, this is false information. A bank is not allowed to share provide a false credit report to any company or person, including the three major credit bureaus. Reporting a debt they have promised not to collect keeps your credit score lower for a longer period and limits your chances to improve your situation.
If the wording of the approved short sale approval letter provided by the bank leads you to believe you do not owe the remainder of the balance of the mortgage, you have the right to look into legal action. Contact our office today at 813-254-2637 to discuss the details of your Florida short sale!