| Being sued for deficiency after a short sale is one | | | | do is to find out whether you have signed a |
| of the biggest worries of those homeowners who | | | | promissory note or not. It is an agreement |
| are reeling under the mighty weight of a deep | | | | between the borrower and lender where the |
| financial crisis. At the time of monetary deficiency, | | | | former makes a commitment to pay back the |
| it becomes exceedingly difficult to pay off the | | | | loan. If a personal liability is attached to the note, |
| home loan. The moment you default, the lender | | | | then the lender gets the right to take away the |
| exercises his right to recover the unpaid home | | | | collateral and sell it to clear off the debt. Short |
| loan through what is known as a short sale. | | | | sale deficiency judgments are based on this |
| A short sale is an efficient means to avoid | | | | promissory note. If you have signed the |
| foreclosure. It is a process in which the lender | | | | promissory note, then in consultation with an |
| agrees to give a discount on the loan balance. | | | | experienced legal advisor you should devise |
| Thereafter, the property is sold off to collect | | | | strategies to reduce the chances of being sued |
| funds to clear the discounted debt. The greatest | | | | for deficiency after the sale. |
| benefit of the short sale is that it does not leave | | | | Familiarize yourself with deficiency judgment laws- |
| an adverse effect on your credit report; you do | | | | Some states allow the lender to file short sale |
| not lose your eligibility to apply for another home | | | | deficiency judgment. A few states put restrictions |
| loan after the sale. However, like foreclosure | | | | on the amount being contested and many others |
| sometimes the sale also fails to generate the | | | | don't permit the lender to sue the borrower. |
| funds that are needed to cover up the debt. At | | | | Study the laws pertaining to deficiency judgment |
| this point of time, the probability of being sued for | | | | of your state carefully. You will certainly find a |
| deficiency after the sale increases significantly. | | | | way to chase off the fear of being sued for |
| How to avert a short sale deficiency judgment? | | | | deficiency. |
| A Short sale deficiency judgment is a lethal legal | | | | Find a proficient negotiator- Yet another method |
| weapon that the lenders use to compel the | | | | to avoid deficiency judgment after the sale is to |
| borrower to cough up the sum unpaid. It is | | | | hire a competent negotiator. On the one hand he |
| primarily a legally recognized procedure initiated by | | | | will persuade the lender to give more discounts on |
| the lender to recover the difference between the | | | | the loan balance, and on the other hand, he will |
| discounted loan balance and the amount | | | | convince him to waive off the differential. With |
| generated by the short sale. Here are some good | | | | the help of his negotiating abilities, you can easily |
| techniques to minimize the possibility of deficiency | | | | combat the fear of being sued for deficiency |
| judgments. | | | | after a short sale. |
| Promissory note- The first thing that you should | | | | |