Can Your Bank Accept a Short Sale and Still Demand Payment?
In a word, YES. According to this article from Yahoo Finance and CNNMoney.com, if you’ve sold your home as a short sale, or you’ve been foreclosed on, your mortgage company may still be able to get a deficiency judgement against you. BB&T (my personal mortgage holder) has affirmed that they are seeking more and more deficiency judgements as many homes are no longer worth the amount of the mortgage.
Generally a mortgage has two parts: a pledge of collateral (the home) and a promise to repay the loan. If you are selling short, being foreclosed on, or giving your home back to the bank (deed in lieu of foreclosure), don’t just assume that your deficiency has been negotiated away. Please seek legal advice to ensure that you are not only being released from the title but also from any debt.
Augusta residents, please (confidentially) contact me if you have any questions. I work with an amazing real estate attorney who can assist you with any issues you may be facing. You can reach me at stacie@staciewells.com or 706.447.3746.
Related posts:
- The Seven Don’ts of Mortgage Funding – Your Augusta GA Home
- Mortgage Calculators for Augusta GA Homes
- Grovetown GA Homes for Sale
- Augusta GA Real Estate Market – July Absorption Rates
- Be Ready For Closing Costs When Buying Your Augusta GA Home
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