If I’m moving because of a job change but I’m upside down on house and considering a deed in lieu, can the bank sue for their loss?

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If I’m moving because of a job change but I’m upside down on house and considering a deed in lieu, can the bank sue for their loss?

Asked on January 16, 2012 under Real Estate Law, Washington

Answers:

Sanford M. Martin / SANFORD M. MARTIN, P.A.

Answered 9 years ago | Contributor

   Usually, an agreement between bank and owner to

agree to a deed in lieu involve an agreement which

governs such provisions as subsequent legal actions

of either party.  If you desire to avoid any lawsuit

by the bank claiming a deficiency judgment, or

loss on sale of the property, you should insist

that the agreement for the deed in lieu shall

prohibit such claims.  Most agreements for

either short sales or deeds in lieu assure the

owner that such subsequent deficiency judgments

or related claims for losses on the mortgage debt

will not be permitted.  Otherwise, the benefits from a deed in lieu are extremely limited.


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