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You can follow these procedures to prevent a deficiency judgment on a short sale of a home.

1. Recognize the Deficiency Judgment: When the profits from a short sale are inadequate to pay the outstanding mortgage balance, a deficiency judgment results. The lender has the option to use legal action to try to recoup the unpaid balance. It is essential to understand the deficiency judgment legislation of your state because they can differ.

2. Speak with an Attorney: Ask a real estate lawyer with expertise in short sales for guidance. They can assist you understand your options and rights while guiding you through the process. As a way to prevent a deficiency judgment, they might potentially bargain with the lender on your behalf.

3. Interacting…

When a home is sold for less than the outstanding mortgage balance, the transaction is known as a short sale. The borrower avoids foreclosure when the lender agrees to accept the money as full payment for the debt. The details on how long short sales stay on credit reports and why they could be preferable to foreclosure are provided below:

1. Length of Time on Credit Report: A short sale may be reported for up to seven years after the transaction date. Usually, the transaction is noted as "settled" or "paid in full for less than the full balance." Depending on the credit reporting agency and how they report, the precise time frame may change.

2. Benefits over Foreclosure: There are a number of benefits to choosing a short sale versus a…

Every day, I look at the pre-foreclosure list on Staten Island (lis pendens), and I can honestly say that the majority of these homes either never enter the market or, if they do enter the market, they don't sell at all.  It has come to my understanding that many homeowners never do anything about their situation.  In all honestly, I can see why; it's a combination of many factors: uncertainty of their financial situation, anxiety, failure, and embarrassment all factor into the lack of seeking help.  Now is as good a time as any to review the basics of a short sale.

What is a short sale?

When a homeowner can no longer afford to continually pay their mortgage, they have more options than having their property foreclosed.  One of those options is a…

In the recent years, more and more homeowners who consider putting their house on the market soon realize that they owe the bank more than the current value of their property. Unable to take such a loss, they feel they have no choice but to wait until the market comes back and sell at a later point. In the meantime, they continue to throw money that they do not have on a mortgage that is not going to go away. Bills continue to pile and the biggest one "the mortgage" eventually has lost its priority. With the housing market unlikely to surge again in the near future, there's no question that homeowners in this predicament will be financially better off if they abandoned their home. In the long run, they could actually save money by walking away and…

A Homeowner having financial difficulty making their mortgage payments may pursue doing a short sale on their home and avoiding the horrors of foreclosure. A Short Sale is when a homeowner owes more money to a lender on a house then what the house is worth in the current housing market. Short sales save your credit score, and takes the burden of outrageous monthly mortgage payments away. Short sale services do not cost a homeowner any money ! The real estate commissions, attorney fees, closing costs are paid by the homeowner's lender. The reason for this is banks make their money by lending money, not owning real estate ! The short sale process allows the bank to minimize their losses on properties destined for foreclosure. Studies have shown that…