Perhaps The Most Important Benefit of a Short Sale

MY HOUSE IS GONE, BUT MY DEBT LIVES ON. You should not let this happen to you. Recent data is revealing that lenders are pursuing more defaulted homeowners for deficiency judgments. Under Florida law, if your house goes to foreclosure and is sold by the Clerk of the Court, the homeowner remains responsible for the difference between what the fair market value of the home was on the date of the foreclosure sale and what the homeowner owed on the mortgage(s) on the home at the date of the sale. This amount is referred to as the deficiency.

If one lets his home go to a foreclosure sale without trying to avoid foreclosure by attempting to, for example, short sell the home, then he has subjected himself to being pursued by the lender for the deficiency amount described above after the foreclose sale occurs. In other words, the homeowner has lost the home to either the bank or the successful bidder at the foreclosure sale, yet he still remains liable for the deficiency amount.

By pursuing an alternative to foreclosure, such as a short sale, the homeowner with the advice and help of his lawyer can seek to have the lender waive their right to a deficiency (which remember is granted to them under Florida law) in exchange for cooperating with the lender, the Realtors, the buyers and others to sell the home through the short sale method.

Do not let this happen to you. At the moment you are thinking about missing your mortgage payments, seek the advice of a lawyer who is experienced in foreclosure avoidance options.