Client Avoids Foreclosure and Liability for Deficiency

Yvonne applied to BALS after she was served with a foreclosure action.  BALS’ attorney, Steve Myers, assisted her with her answer.  Yvonne had fallen behind on her mortgage payments after her brother, who had been paying her rent to live in her home, moved out.  With Steve’s assistance, she was enrolled in a mediation program and she received a short sale offer on her property.  A few months later, the short sale closing was scheduled.  Steve contacted the lender to confirm that by completing the short sale, Yvonne would not be liable for any deficiency.  The lender agreed and advised that the arrangement would be confirmed in writing at the closing.  Steve attended the closing with Yvonne.  The realtors were unaware of the lender’s agreement to forgive the deficiency and had received no documents to confirm it.  They contacted the lender and later that day received a letter confirming the arrangement.  Yvonne was able to complete the sale without liability for any deficiency.