In the last few days I have seen 3 short sale approval letters from Coutrywide's  short sale negotiators.  Countrywide reserved the right to collect the deficiency.  While this is a small sample size it is odd considering I have reviewed dozens of their short approvals and I can say that in the past they usually agreed to release sellers from the deficiency.     

We know that it has been Bank of America’s policy to reserve the right to collect a deficiency and now this may become Countrywides policy.   

You may wish to :

1.       1. Set up your work out strategy ahead of time;

2.      2.  Be prepared to pressure the lender with lender liability issues – they have been sued by the state of California

3.      3.  Stay current with your first;

4.       4.  To not agree to do a short sale unless you are absolutely sure you have negotiated away the deficiency;  

5.       5. To know your anti deficiency protections under California Law an use them as a shield; and 

6.       6. To be prepared to play hardball and let them know that if they do not accept this short sale they will not recover any money from their second lien until they recommence giving out teaser rates to people who can't afford to even pay back the teaser rates.  In other words let them know why they will have a non performing asset on their books or they will have to sell the asset for two cents on the dollar.  

For more information on short sales and short sale negotiations

For information on buying  San Diego Real Estate.

Regardless of what some people are saying Short Sales do not automatically release you from a deficiency.  If someone tells you that ask them to document the law that supports such a belief.