2 Common Short Sale Questions Answered
I continually run into some confusion with consumer's about short sales. There are two common questions that keep coming up.
Can a bank come after you for a deficiency judgement in a short sale?
All depends on the negotiations. If you are doing a short sale make sure that you have in writing that the debt is settled and they will not be seeking a judgment. I always work with an attorney to make sure your rights are protected.
What is the number one reason to consider a short sale instead of just letting the bank take my home?
There are several reasons why a short sale or another alternative to foreclosure is a better option for you. The main reason is to avoid the chance of a deficiency judgment. In Massachusetts the banks have 2 years to file for a deficiency judgment, from the date of the foreclosure, and they have 20 years to collect. If the judgment is filed against you, they can attach future property, pay checks and so on.... Right now we are not seeing deficiency judgments filed, but the banks are going to get sick of losing money and will have the staff in place to possible go after the balance of foreclosed loans. Who wants that hanging over their head for 20 years
A short sale is a complicated transaction, if the short sale Realtor is not using an attorney, I would highly suggest seeking independent counsel so there are no surprise down the road. A good short sale specialist will explain the different options for you and help you decide what option is best for you.
Thinking of a short sale for your Massachusetts or New Hampshire home? Call Kevin at 978-360-0422 for your free no obligation, confidential consultation. I will discuss all your options with you.
Visit, Should I Short Sale my Home, to find out more about short sales.