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Short sale deficiency in Colorado

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1stHomeGa

Junior Member
What is the name of your state (only U.S. law)? Colorado

I posted a question in another thread and have been happy with the insight I've received so I thought I'd present another situation for feedback.

(Please excuse my lack of terminology as I am not a real estate expert)

I have a friend who did a short sale in Colorado this year. She recently received paperwork from the USDA/U.S. Department of Rural Development saying she owes the deficiency (about $115,000) and that they have been authorized to offer a 60 month settlement for about $35,000.

I did a little research and saw that some lenders are not able to pursue balance deficiency's in certain states but Colorado is not one of them. This seems to be Issue #1. The other issue seems to be that this collection attempt is coming from the USDA.

What are the options here? Is there any type of balance deficiency waiver?

Just not sure what to tell her though I did tell her to get as much free info as possible before seeing an attorney.
 



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