This is the 2nd tip of “10 Questions You Should Ask About Florida Short Sales” eBook, which is available as a FREE download.
In a nutshell, the lender’s right to pursue you for the deficiency after a short sale stems from your obligation to the lender under the Note. If you remember, when you took out your home loan (whether to refinance or to purchase), among the hundreds of pages were two very important documents:
This is the 1st tip of “10 Questions You Should Ask About Florida Short Sales” eBook, which is available as a FREE download.
Or, Could I be liable for a deficiency judgment after my short sale?
It’s possible to short sale your property even if your property is encumbered by two mortgages.
Here’s proof that if can really happen even with a Bank of America short sale.
The active players were “EMC Mortgage Corporation holding the 1st mortgage and Bank of America Home Equity Line of Credit holding the 2nd.
After EMC received a complete package, they approved the terms of the short sale in 67 business days! Then the package was handed over to the Bank of America short sale department, specifically the HELOC department out of Jacksonville. They work fast. They approved their side of the short sale in less than two weeks after receiving the complete package. (If you have been following my blog, you will notice that the key to a short sale success is a complete package ;))
Here’s the approval breakdown:
When we begin to counsel our clients about the short sale of their homes, one of the questions that we get asked frequently is “Is it possible to sell my home as a short sale and not have a deficiency judgement placed against me?” The answer is Yes! It has happened before in the past. However, that’s certainly not the norm.
Not too long ago, I was quoted in a Florida Weekly article regarding lenders pursuing borrowers for the deficiency judgment. Here is the actual article:
The post short sale party can go on for a while.
This is the 10th step in our series: “12 Things You Should Know to Survive a Short Sale.”
I’ve asked my good friend and attorney, P. Brandon Perkins, questions about deficiency judgments that he so often deals with.
A lender that agrees to a short sale…
This is the 8th step in our series: “12 Things You Should Know to Survive a Short Sale.”
…may pursue the sums it is owed in the form of a deficiency judgment.
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