“A deficiency judgement is an unsecured money judgement against a borrower whose mortgage foreclosure sale did not produce sufficient funds to pay the underlying promissory note, or loan, in full,” said Dania Fernandez, Esq. in her recent Resource Living article. Here are ways you can avoid a deficiency judgement:
- Stop the Foreclosure
- Loan modification
- Short Sale
- Deed in Lieu of Foreclosure
- File for Bankruptcy
“In short sales and Deed in Lieu, many times the lender will waive their right to a deficiency. Both involve specific documentation that should be reviewed by an attorney,” she continued. Bankruptcy should be considered only if all other options have failed. As with all legal matters, consult an attorney before making a decision.
Know the market, call Sheryl DiCarlo, 305.332.3256 before you next real estate move.