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Q.If my lender lets me do a short sale, can the lender come after me for any outstanding balance on the loan?
A.The answer is NO IF the loan was a purchase money loan secured by a primary residence that the borrower lived in.
The answer is YES IF the underlying property is a vacation home, a second home, an investment property or if the loan was a refinance or home equity line of credit.
For a more in depth analysis and some examples of specific situations, see, If I default on my mortgage can't I just turn the home over to the bank, walk away, and owe nothing?
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