R they reserving the right to pursue?

Question

I believe ASC is reserving the right to pursue a deficiency, although it doesn't acutally SAY it like that. Would someone be able to interpret this for me?

"Upon satisfaction of all terms specified above, the mortgage will be discharged and a release document will be forwarded for recording. If a foreclosure action was commenced (which it had started), then upon satisfaction of all terms of this approval, the pending foreclosure action will be dismissed and appropriate instruments recorded.

ASC is required by Fair Debt Collection Practices Act to inform you that if your loan is currently delinquent or in default (which is was one month behind) as your loan servicer, we will be attempting to collect a debt and any information obtained will be used for that purpose. However, if you received a banruptcy discharge, and the loan was not reaffirmed in teh bankruptcy case, ASC will only exercis it's right against the property and is not attempting to act to collected the discharged debt from you"

James Ward · Answer

I agree wiht Scott, it does not state that they will come after any deficiency.

And it is imperative to have waiver language in the Letter.

Scott Hubbard · Answer

Upon a successful close and within the terms specified, the security interest will be released. There is no indication of any notice of intent to pursue or to retain its rights to pursue a deficiency judgment.

Though it clearly does not reserve ASC's right to pursue a deficiency judgment, it doesn't mean they won't. It is best to see if they will add the waiver language anyway.

Steve nailed this one.

Maryann L. · Answer

We tried to get it changed, but they wouldn't

Steve Babiak · Answer

The part about "Fair Debt Collection Practices Act" is CYA boilerplate stuff. They are not allowed to try to collect a debt from those who have filed bankruptcy, and so any contact with such a borrower has to be disclosed as a non-attempt to collect for CYA purposes. And if you ever phone the foreclosure attorneys that work for the banks, you will get this or similar almost every time in a pre-recorded message: "we are attempting to collect a debt and any information obtained will be used for that purpose."

I can't speak regarding the other paragraph.

R they reserving the right to pursue?

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