Absolutely - this is the most critical term in your short sale approval. Without a written deficiency waiver in the lender's approval letter, the lender retains the right to pursue you for the difference between the sale price and your loan balance. This can be tens or hundreds of thousands of dollars. Do not close without explicit waiver language reviewed by your attorney. If the lender refuses, weigh this risk against the alternative of foreclosure.
From the seller playbook: Short Sale and Distressed Sale Procedures in New York
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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