How do I avoid a deficiency judgment?

Boynton Beach FL – We frequently receive this question:

If I short sale an investment property, will the bank/investor pursue the deficiency?

Here was our answer. That is a legal question. Since I am not a lawyer I cannot answer it.

But, I do know that there are several things that you can do to get the lender to forgive you of the debt.

First, just work hard to convince your lender to waive the deficiency. But, be aware that Investment Property Short Sales are tougher because the lenders may be more reluctant to waive the deficiency. Many lenders will agree to waive it when you have presented financial statements that show you cannot afford the deficiency. We have methods that have been very successful in geting very large deficincies forgiven...if you schedule a consultation with me, we can discuss these strategies then.

If you can't get deficiency waiver language in your short sale approval letter, and the lender goes forward and gets an actual deficiency judgment, and they begin collection proceeding or sell the judgment to a collection agency...hire a good lawyer. They can usually find a hole in their court case and get you out of paying the debt. These lenders are so disorganized that the often do not have all their paperwork in order.

Or, they can find a situation where the lender broke FDCA Law. In that case, the lender is usually more than happy to settle with you versus facing a lawsuit.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at ShortSaleInfo@thejacksonteam.com. I will contact you for a free consultation.
Or, if you prefer, you can call me at (561) 602-1258

Considering a loan modification? Our loan modification kit has the instructions you will need to help you get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading

The Jackson Realty Group, Personalized...Not Franchised
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This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Steve and Jackie Jackson's personal views and do not reflect the views of The Jackson Realty Group Inc..