Deficiency Judgment is defined as the amount for which the borrow is personally liable on a note and mortgage if the foreclosure sale does not bring enough to cover the debt. The judgment is for the total amount and not for the deficiency, the recovery from the foreclosure sale being deducted from this amount.
Deficiency Judgment
Foreclosure-In 100% of foreclosures (except in those states where there is no deficiency) the bank has the right to pursue a deficiency judgment.
Successful Short Sale-In some successful short sales it is possible to convince the lender to give up the right to pursue a deficiency judgment against the homeowner.
Deficiency Judgment (amount)
Foreclosure-In a foreclosure the home will have to go through a REO process if it does not sell at auction. In most cases this will result in a lower sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgment.
Successful Short Sale-In a properly managed short sale the home is sold at a price that should be close to market value and in almost all cases will be better than a REO sale resulting in a lower deficiency.
View the latest Orange County luxury real estate news at the Canaday Group blog.
Showing posts with label foreclosure. Show all posts
Showing posts with label foreclosure. Show all posts
Wednesday, April 01, 2009
Thursday, March 19, 2009
Short Sale vs. Foreclosure & Your Employment
How will a Short Sale vs. Foreclosure affect your Current Employment & Future Employment? Here are the answers:
Current Employment
Foreclosure-Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. A foreclosure in many cases is ground for immediate reassignment or termination
Successful Short Sale-A short sale is not reported on a credit report and is therefore not a challenge to employment.
Future Employment
Foreclosure-Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment.
Successful Short Sale-A short sale is not reported on a credit report and is therefore not a challenge to employment.
Current Employment
Foreclosure-Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. A foreclosure in many cases is ground for immediate reassignment or termination
Successful Short Sale-A short sale is not reported on a credit report and is therefore not a challenge to employment.
Future Employment
Foreclosure-Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment.
Successful Short Sale-A short sale is not reported on a credit report and is therefore not a challenge to employment.
Subscribe to:
Posts (Atom)