So you've heard about Short Sales or maybe you are facing foreclosure?
What does deficiency mean?
You bought a home for $200,000.
Your unpaid principal balance is now $175,000.
Your unpaid principal balance is now $175,000.
You i.e. lost your job, got a divorce, overwhelming medical bills, etc.
and have missed several payments.
Your missed payments, interest, penalties and attorney fees brings your total due to $190,000.
and have missed several payments.
Your missed payments, interest, penalties and attorney fees brings your total due to $190,000.
You need to sell.
Your property value has dropped to $150,000.
The bank verifies the value has dropped, then allows you to short sale.
You avoid foreclosure.
The deficiency is the difference between your total payoff ($190,000)
and current market value ($150,000)
making it $40,000!
The bank can do two things with the deficiency balance:
1- File a deficiency judgment against you for the remaining balance.
2- Agree to waive the remaining balance in the terms of the short sale.
What you want the bank to say in the short sale approval letter is:
The deficiency is the difference between your total payoff ($190,000)
and current market value ($150,000)
making it $40,000!
The bank can do two things with the deficiency balance:
1- File a deficiency judgment against you for the remaining balance.
2- Agree to waive the remaining balance in the terms of the short sale.
What you want the bank to say in the short sale approval letter is:
Call me to find out what the ramifications of deficiency mean to you, as the laws vary from state to state.
callteamlarson@gmail.com
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