We need to amend your statement: “in a non-recourse state.”
In states that are “recourse” states, the bank can still come after you for the portion of the mortgage that isn’t satisfied by selling the property.
In states that are “recourse” states, the bank can still come after you for the portion of the mortgage that isn’t satisfied by selling the property.
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The fun thing in that case would be to get discovery to see what insurance / swap / secondary yield spread ,,, etc. etc... they pocketed that could be credited to your “shortfall”.