In their Feb 15th, 2012 Bulletin to their servicers, Freddie Mac stated that in the event of a successful short sale closing where all parties have acted in good faith they will accept the proceeds of the sale and will not pursue the borrowers for the deficiency (entire amount owed on the original mortgage note). Furthermore they have instructed all servicers to release the lien and mark the mortgage note as “Satisfied”.
This is good news for those sellers who have Freddie Mac as the investor on their loan and who need to do a short sale. Most servicers are acknowledging the regulation change with adding deficiency language to their approval letters. Of the major lenders Aurora is the only one we have come across who is thus far refusing to add the proper deficiency language. (Shame on you, Aurora)