It can have an affect on whether a deficiency is required, but hardly ever affects whether a short sale will be approved.

If you have income and assets, and you live in a state that allows deficiencies, the lender may try to collect.

My guess is the attorney is trying to argue a deficiency waiver for his client on the second mortgage and/or are requesting his fees be paid by the GMAC.

Assignee further agrees to hold Assignor harmless from any deficiency or defect in the legality or enforceability of the terms of said agreement.

Take a loan against your home, car or other personal property to pay the deficiencies?

Deficiency states: If the property is in a deficiency state, the lender may want to pursue a note in lieu of filing a judgement for the deficiency.

In any case, he or she retained both ownership of the property and responsibility for the loan.The payments weren't paid, the bank foreclosed, and they are now coming after him or her for the deficiency.

If you go to the lender with a list of deficiencies and that you will go in and improve the property, pay all the back payments and sign the note with the seller, you might have a deal and the bank would have good reason not to go to sale.

Also rest assured that if there is any shortage, the lender will pursue a deficiency judgment against you, and will try to recover the shortage.

Again, divorce does not excuse your friend from repayment if she signed a promissory note she may be subject to a deficiency judgment which will represent the loan losses plus expenses, late fees, etc.