Foreclosure vs. Short sale in the Boise Idaho area? Have you considered the impact of a deficiency judgment?

 

What is a deficiency judgment? Watch this video to find out or read the transcript below. What you absolutely must know before you decide to let your home go to foreclosure. There are options and this little bit of information can potentially save you thousands. Check out the Foreclosure vs. Shortsale tools for more information.

 

 
Video transcript: Contemplating a foreclosure or short sale in Idaho. Consider the possibility of a deficiency judgment and how to possibly avoid it with the right representation.
 
Hello.
 
Recently I have had to inform a number of clients that there is the potential for what is called a deficiency judgment. And, that is when you lose a property through foreclosure or you sell your property through a process called a short sale. In either case there is a loss incurred by the lender and in which case they can effectively get a judgment against the seller, the borrower, for the balance that the loss was. So, you have a property that had a $250,000 loan; the property sold for $200,000 – the lender could in turn get a judgment against you for the $50,000 loss.
 
There are some restrictions to that. They only have 90 days in which to do so, once the foreclosure sale takes place. The good news is, this doesn’t happen very often on residential mortgages. In fact, in most instances, if we sell the property through a short sale process we can then obtain a release of any deficiency judgment.
 
So, that is the suggestion and recommendation that I make if you have to sell a property – you owe more than it is worth – that we do try to obtain a short sale and a release of the deficiency judgment.
 
Feel free to give me a call any time – 208-287-0400, or email me.
 
Thank you very much!

 

Posted by DarrinJ at 1/27/2009 5:50:00 AM
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