Deficiency Judgment?
How do you reassure the seller that the lender will not pursue them for the difference in the loan amount? Do they have a recourse if the lender decides to go after them?
I was told that the lenders just write off the loss/ do not have resources to pursue the home owner (how would he pay the $20K etc when he was not current on the mortgage?)
With the current credit crunch and the short supply of funds to lend, I would not be surprised if lenders more frequently sought deficiency judgements resulting from a short sale.
Unless you have an agreement with the lender that there will not be a deficiency bill to the borrower you cannot assure anyone of anything.