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If you find yourself behind on your mortgage and looking at a short sale or foreclosure and wondering whether your Lender(s) will come after you for a deficiency judgment, you should read this article in its entirety? A deficiency in a mortgage foreclosure or short sale situation is the difference between the value of a lien on real estate (the amount which is due to fully satisfy a debt) and the price obtained by the Lender after the sale of the real estate (or the fair market value of the property). A deficiency judgment is a judgment lien against the debtor or borrower whose short sale or foreclosure sale did not produce sufficient funds to pay the mortgage in full. A deficiency may not always result in a judgment being filed against the homeowner. However, in many recourse states, (all except California & Oregon and a few others) the Lender nearly always will reserve their rights to pursue a deficiency judgment at some point in the future. If the Lender does exercise their rights and obtains a judgment, that judgment may result in the garnishment of wages/paycheck (up to 20 years) , bank accounts levied and/or assets like any personal (car, boat, etc.) or real property you may own could be seized. This judgment can only be granted to them after the short sale or foreclosure has been completed. Given this, it is imperative for the homeowner in default to protect themselves from a deficiency judgment BEFORE the short sale or foreclosure is completed if they don’t want to wind up filing bankruptcy now or in the future. Are lenders going after borrowers whose homes were sold through short sale or foreclosure? Absolutely! Lenders who have defaulted loans on homes throughout about 40 recourse States are, in fact, preserving their rights to come after homeowners for a deficiency judgment. Often times, homeowners are misled into thinking that once the house is sold, that this is the end of it. This is a mistake of wishful thinking! Unfortunately, too many times, particularly in recent years, many of them find out the hard way when they are suddenly slapped with the judgment many years later . Then, they are left with no alternative but to file bankruptcy to get out of the judgment. But wait! There is, in fact, a better way to prevent this from happening to you and most importantly, keep you from filing bankruptcy. Force your lender before the sale to waive their rights to pursue a deficiency judgment. What do I mean by force them? First of all, lenders usually won’t waive that right on their own, because they either will sell that bad debt to a third party collection company who will definitely pursue you or they will come after you themselves if they feel it is financially worth it. You have to gain leverage over them in order to force them in to waiving that right. And, if you are looking to gain leverage against your Lender(s) to sell your home without a deficiency judgment (or promissory note) LOOMING over your head and haunting you for up to 20+ years after the sale, then you don’t have many options. You must “flip the switch” on them! What do I mean by “flipping the switch”? Use that loan that they gave you, “against” them. According to the Office of the Inspector General at the FDIC, 83% of the home loans issued since 2001 have errors, federal violations and/or fraud contained in them. If your mortgage was written in that timeframe, then there is an 83% chance that it is not compliant and has errors, federal violations and/or fraud within it. Have that mortgage reviewed by mortgage auditors & attorneys and use that mortgage compliance report to force your lenders to waive their rights to come after you or risk having a lawsuit and federal fines and penalties imposed against them. It is the only way to gain leverage over the lenders in this current mortgage crisis. Get the latest tools to Get Out of a Deficiency Judgment by your Lender BEFORE you sale your home. Get the FREE Report: How To Avoid a Deficiency Judgment: What Most People, Especially Lenders, Won’t Tell You! to stop your lender from coming after you and ruining your life for 20+ years past the sale of your home. Get the Free Report on this link http://force-your-lender-to-cooperate.info/avoiddeficiency Use Special code: 1TMC9
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Deficiency Judgement, Short sales, foreclosure, Mortgage, Real Estate,
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