• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Foreclosure University

Foreclosure University

Your Online Real Estate Investing Resource

  • Home
  • Study Center
  • Products
  • Funding
  • Property
  • FAQ
  • Blog
  • Contact

Release of lien vs. loan satisfaction

by Jarad Leave a Comment

Question:  Last October my ex-wife and I finally sold our South Florida home in a short sale. Sun-Trust held our equity line and agreed to release the lien to accommodate the sale. The balance at the time was $83,000. They agreed with a payment of $10,000 to release the lien but would not release the deficiency. A year has since past and now I received notice that they are suing me for the balance of $73,000. Am I destined to file for bankruptcy?? Any assistance would be greatly appreciated.

Greg E.

Answer:  – When a bank says they’ll “release the lien”, they still retain the rights to file a judgment against the homeowner which is what happened in this case. Usually you can offer the banks a few thousand more to completely “satisfy” the loan which means they cannot come after you for the deficient amount. (Note to those who might be going through a short sale… make sure you or whomever is doing your short sale demands a satisfaction so the bank cannot came after you) Now your options are to work out a payment plan, settle with them, or file bankruptcy. Most choose the latter.

Filed Under: Bankruptcy, Deficiency Judgment / 1099 Tagged With: Bankruptcy, deficiency judgment

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Featured Product

foreclosure home study course

"The Investors Complete Foreclosure Home Study Course - Only $47"

Discover a Proven System for Buying Real Estate Foreclosures 30%, 40%, and 50% Below Market Value. Generate Huge Returns Using This Step-by-Step Foreclosure System.

Learn More - Click Here


Build Your Wealth with Rentals

Long Term Investment Property

Looking for Great Returns and Positive Cashflow? Build your wealth by investing in rental properties.

Check out our inventory! »


Real Estate Topics


Affiliate Disclosure

We review products from time to time and receive compensation from the companies whose products we review. We review each product thoroughly and give high marks to only the very best. We are independently owned and the opinions expressed here are our own...

AWeber Free: Email marketing for free. No credit card required.

Footer

Search State Foreclosure Laws

Copyright © 2025 · Foreclosure University.
Home  |  Study Center  |  Forms  |  Products  |  Site Map  |  Terms of Use   | Disclaimer | Privacy