The short sale approval letter should contain any information on accepting the particular amount as satisfying the monies owed or if they reserve the right to pursue the deficiency. More and more it will be some form of the latter. Especially where secondary liens are concerned.

Now, just because the initial approval letter has this language doesn't mean one can't negotiate it back out. All or at least some of it.

A compromise of some type might be acceptable. Promissary notes are becoming very common. Or maybe some cash brought to closing.

But at least with a short sale you know where you stand. But it is still a good idea to have an attorney versed in short sales review any approval letter to make sure all parties understand.

Steele V. Propp
Certified Distressed Property Expert
Schatz Real Estate Group
Bank Owned Property Division
1009 Mainstreet
Minneapolis, MN 55343
www.shortsalesMinnesota.com