Saturday, October 8, 2011

Deficiency Judgments, Foreclosures and Short Sales: Why You Should Consider A Short Sale: Homes For Sale: Homes For Rent

A lawyer who defends against foreclosure is recently quoted as saying there was "a false sense of calm" amoung homeowners that went through foreclosure. He added, "that's changing."

Lenders typically have five years following a foreclosure sale to sue for the remaining mortgage debt. Most states allow 20 years to try and collect the debts. Depending on the state, the debt owed grows at about an 8% interest rate.

Florida is among the biggest deficiency-judgment states. Since the start of 2007, Florida has had more foreclosures than any other state that allows deficiency judments with more than 9% of the US total, according to Lender Processing Services, Inc.

Sharon Bock, clerk and comptroller of Palm Beach County, Florida expects "a massive wave of these cases as banks start selling the judgments to debt collectors."

Forty-one states and the District of Columbia permit lenders to sue borrowers for mortgage debt still left after the foreclosure sale. Some lenders say they are most likely to seek a deficiency judgment against those they believe are "strategic defaulters" who chose to stop paying because the property lost a lot of value.

The Wall Street Journal reported the average "deficiency amount" was $100,000 in the US. This is the amount by which foreclosure sales fell below the loan balance.

A short-sale, if negotiated properly, would have the lender agree to waive its right to try and recover the "deficiency". There are criteria that need to be met to qualify for a short sale and a requirement is to list the property with a broker. The lenders require the property be marketed to a wide audience and listing with a Realtor will help in this regard.

I can help with the short sale process and we can work together towards a successful short sale.

If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Please text or call to give me your name, telephone number and e-mail address for the ability to access home searches.

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

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