As many of you are aware, on February 15, 2012, Freddie Mac reinforced its requirement that servicers waive deficiency liability for their companies and Freddie Mac for short sales that close in accordance with Freddie Mac guidelines.
This is another strong argument against strategic default. If your loan is a Freddie loan it makes no sense to gamble on a law suit when a short sale will waive liability. Also remember a lender does not have to do a trustee’s sale in Arizona. If you are in default and your loan does not qualify as purchase money loan the lender can sue.
A short sale of a Freddie Mac loan puts you in the position to buy sooner and now waives deficiency liability. Given these compelling factors, the question is not whether or not to strategic default – the question is why would anyone with a Freddie Mac loan strategic default?
Guest Author
Brown & Memmott Law, PLLC
