January 11th, 2010 - By
Posted in Avoid Foreclosure
If first and second mortgage holders accept a short sale and it falls short of the amount owed can they still seek a judgement even though they choose to accept the offer, especially if the property is worth enough to pay off both loans in full?
2 Responses to “Short Sale To Avoid Foreclosure.?”
January 11th, 2010 at 2:30 pm
I think that this varies by state, in California, yes they can.
The difference between what is owed and what is collected
is called a deficiency balance and you are still liable for
that amount. The mortgage holders, however can not
intentionally accept an offer that is lower than the best offer
on the table, as an example say the house was worth
$400,000, if there is an offer of $250,000 and another offer
for $375,000 they must take the higher offer.
Your deficiency balance would be $25,000 plust the costs
associated with the sale (forelosure costs, title fees, escrow
fees etc. etc.)
Good explanation of deficiency balance
January 11th, 2010 at 4:25 pm
no they can not go for a judgement if the companies except the offer but be advised short sales will affect your credit
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