Atlanta Short Sales

Lien Release vs. Full Satisfaction in Short Sales

When buyers purchase real property, they, and the title company insuring title, will ensure that the property is conveyed free and clear of all liens.  When your lender agrees to a short sale, they are agreeing to release their lien(s) from the property for less money than what is owed so the property can be sold.  So whenever a property is sold in a short sale, the lien is released from the property.  Yet the lender generally has two choices.
Lenders can either: 1) Release the lien and declare the debt paid and settled in full (called a "full release and satisfaction") or 2) Release the lien only from the property and still consider you personally liable for any unpaid balance of the loan ("lien release only").
In all situation our negotiators strive to obtain a "Full Release and Satisfaction"...