California short sales - Watch out for those escrow instrutions

Some lenders provide escrow instructions to the closing agent which state the lender will release the lien but not the underlying note

Some lenders provide instruction to the lender with a list of conditions. They then state that if the conditions are met they will not pursue the seller for a deficiency

And now some lenders are waiting until the last moment to demand cash at the closing table.   And then interestingly the lenders are still pursuing the sellers for the deficiency. 

Please do not sign your pruchase and sale agreement, if you have not had your attorney add some clauses into it which will protect you from a deficiency.  The California Associaion of Realtors Short Sale Addendum does not go far enough to protect you.