Making sure my loan is forgiven

[Nick Campbell]

My home is currently going through a short sale with two mortgages. It seems they will both be forgiven. I don't have the money for a lawyer, but want to make sure that the bank or a collection company can't come after me for the balance of the loan. I have read that I need to make sure that the mortgage AND the promissory note are BOTH forgiven.

How can I do this without a lawyer? Obviously I need to get something in writing, but what?

[Nick Campbell]

Originally posted by Bill Gulley:

Hi, this appears to be standard verbage. Para. 5 appears to say that only in the event the closing is delayed then additional fees may apply. Para 6, pray there is no insurable loss! You might guard the place to make sure they don't burn it down, LOL, as they get the loss proceeds to apply to the loan. The final HUD-1 must be made 24 hours in advance of settlement, ask the closing agent for a copy at this time as well, so any junk fees should be disclosed by them as provided for in para.7. In a commitment such as this, the words "fully satisfied" are not used, but certainly implied. The deed of release will use that type of verbage which may be filed 30,60 or maybe 90 days after settlement according to state law. They might send it to the seller to file it, so make sure you have your address down to file that if possible, otherwise get with the closing agent on that filing.
To me, in my opinion, I don't see anything here but usual and customary requirements. I would continue to march on the deal. Bill

Great! Good to hear, thank you!