deficiencies and promissory notes

[Stephen Gathman]

Do a lot of closed short sales result in the sellers still being on the hook for all or a portion of the shortfall? For example, would a home selling for $200k with a loan amount of $370k likely have something like this required of the seller?
If so, it makes foreclosure look more attractive to the seller.
Thanks for help on this newbie question.

[James Ward]

It all depends on what is negotiated and agreed upon by the Lender and Property Seller. Any Short Sale Negotiator worth their wait in salt, will negotiate the "best" possible exit for the Property Seller.

Just giving out numbers will not get an answer. The only true way of finding out what will result is to talk and negotiate with all Lenders involved.

As for what makes a Short Sale a "better" resolution than a foreclosure, read thru this site. This topic has been addressed many many times. And you will see many different points of view.