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While no promises can be made util the short sale approval letter arrives, well over 95% of the time a full settlement is reached, with the lender agreeing to waive their right to pursue any deficiency. In fact:
- Fannie Mae and Freddie Mac (who own most loans), have adopted streamlined guidelines with policies of debt forgiveness included for those who successfully short sell
- FHA, VA and USDA policy is also to also fully waive any balance with a successful short sale
- Many other private investors participate currently waive their right to pursue any deficiency in a successful short sale.
There are currently very few lenders who in fact will not fully forgive debt in a short sale, but there are some. These are most commonly smaller lenders with portfolio notes who are not subject to the rules of any existing short sale program, and must be negotiated individually.