What is a Deficiency Judgement?
Can I just Walk away from my house?
We are often asked, Why can't I just walk away and let the bank foreclose, or I'll just call the bank and they can have the keys. The BIGGEST financial reason to pursue a short sale over just walking away is your banks ability to pursue you for the loss. If the foreclosure sale price is less than the amount you owe on your mortgage, your lender can sue you for the difference, this is called the "deficiency judgment."
The primary goal of a short sale is to acquire in writing that the bank will not pursue you for the difference as long as the terms of the short sale approval are met. This language is included in a document called a "Short Sale Approval Letter". To follow are a few examples of this language which varies depending on the mortgage company or investor behind the mortgage.
Contact us for your free consultation so that we can discuss the short sale process and how it can work for you!