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FACING A JUDGMENT DEFICIENCY DUE TO FORECLOSURE OR SHORTSALE, WE CAN HELP!!

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  Deficiency Judgment  

 

 Anyone can become a casualty of the current slowdown in our economy. If you have found yourself facing a mortgage judgment deficiency after foreclsure through no fault of your own…We can help.

Today a record number of hardworking families are facing mortgage loan deficiencies after foreclosure (homes are going back to the bank for less than the debt that is owed, and the lender may be granted a judgment deficiency for the balance of that debt against the debtor, with the right to resort to other assets or income for its collection).

In the past, banks would write such deficiencies off. However, due to the volume of homes losing their loan value and going back to the bank with a “mortgage deficiency shortage” (which you, the home owner will be responsible for) the banks are now going after these families to collect this money after foreclosure. These families are hearing from either the bank itself or worse yet; banks are now beginning to “pool” (compiling numbers of mortgage deficiencies together) and selling them to credit collection companies and it is these credit collection companies that are going to come after these families to harass and ruin them.

Judgment Deficiency.com, is a negotiation company that handles negotiations of mortgage deficiency judgment after foreclosure. If you and your family are facing  a judgment deficiency on your home after foreclosure, we want to help. Negotiating: is the process by which two or more parties with different needs and goals work to find a mutually acceptable solution to an issue. Because negotiating is an inter-personal process, each negotiating situation is different, and influenced by each parties skills, attitudes, and style. Our understanding of the negotiation process allows us to manage our negotiations with confidence, thus increasing the chance that the debt settlement reached will be positive for both parties. We work for you to negotiate down the judgment amount of the deficiency against you and your family. We are continually developing new relationships with lenders, creditors, law firms, etc., in order to attain the best possible terms of judgment settlement as well as reductions of this judgment for you.

(Note: most settlements can be structured to take the form of a lump sum or installment plan the best terms of settlement are always negotiated on your behalf.)

 

 Deficiency Judgment after foreclosure: (Article)

There is a lot of information on the subject of deficiency judgment after foreclosure on the internet that it is hard to separate what is truth and what is fiction. There are articles that state that lenders will not go after a homeowner in a deficiency judgment situation. Does that really sound logical? Mortgage companies are in the mortgage business to make a profit and if not a profit then it is in the lender’s best interest to pursue the homeowner after a deficiency judgment to recoup their money. 
Here are the cold hard facts. The mortgage business is just that, a business. Now lenders have begun selling their deficiency judgments to collection agencies. Lenders are now getting deficiency judgments against the homeowners, deficiency judgments which they will turn around and sell to collection agencies, to make up for some of the money that has been lost on these bad home loans lost in foreclosure. And we all know how friendly collection agencies are!
 
 So, if you have lost a home or are going to lose a home due to a foreclosure or a deficiency short sale, and are going to be slapped with a mortgage deficiency judgment. Someone will be contacting you in the future to collect. Don’t wait for someone to take action against you, take action now…protect your credit, your family and your future. Don't stand by and become another victim! 

Deficiency Judgment Collection after foreclosure: (Article)

Deficiency judgment is defined by the real estate dictionary as a court order permitting the lender to collect the amount of debt which is still left unpaid by the mortgagor even after foreclosure of the property or any type of security put against the loan. The money that is being collected is therefore deemed as deficiency judgment collections after foreclosure. 
 
In order to simplify it, let us take one example. Jenny has bought a home worth $300,000. Now, she has defaulted on the loan obtained from the bank. The bank has decided to go for the public auction of the property to recover its money. The public auction managed to fetch the bank $200,000 which is however not the entire amount of debt that Jenny owes to the bank. The remaining $100,000 is called “deficiency” and if the bank manages to secure a court order which is called “deficiency judgment,” Jenny is legally obliged to pay $100,000 and other foreclosure costs that the bank has to incur due to Jenny’s default. 
 
The extra costs that the homeowner may have to pay as part of the judgment deficiency amount after foreclosure include legal fees, increased interest payments, back principal payments, in some cases pre-payment penalties and other expenses. If we take the above mentioned
 
 
Mortgage Deficiency Judgment: (Article)
 
Mortgage deficiency judgment after foreclosure is the court order that the lender may obtain following the borrower’s inability to pay back the promissory note secured with a mortgage on a home or some other real estate property. When a borrower buys a property, he enters into a contract or a note with the lender which says “I Owe You,” meaning that the borrower has to pay his obligations to the lender that helped finance h is property purchase.
 
However, in a situation where this promise of “I Owe You” seems to be losing its meaning and significance due to various reasons such as loss of a job, lower income, unexpected medical expenses or any other unforeseen emergency, the borrower finds himself in a situation which is called a mortgage deficiency default. In this situation, he is not able to pay his obligations and dues to the lender under the promise “I Owe You.”
 
In such a difficult situation, the first thing that inevitably happens is the foreclosure of the mortgage property. But, foreclosure sometimes may not suffice for the lender to obtain the entire amount of his obligation, thus a mortgage deficiency judgment may be obtained by the lender against the borrower.
 
For example, a borrower’s mortgage property is worth $500,000 and foreclosure on the property manages to bring the lender $400,000. The remaining $100,000 is deemed as a mortgage deficiency judgment amount on the mortgage and for that a lender bring the borrower to court, in a lawsuit demanding the court to mandate the borrower to pay a mortgage deficiency judgment to the lender.
 
The mortgage deficiency judgment involves filing a suit on the non-payment of the promissory note at the courthouse.   The summons mandates the borrower to answer the complaint of a mortgage deficiency; the complaint lists the reasons why the bank is justified in its demand for a deficiency judgment from the borrower on the promissory note.
 
When the lender obtains a mortgage deficiency judgment, the borrower has no option but to pay the deficiency judgment amount to the lender. A mortgage deficiency judgment can attach all non-exempt asses owned y the borrower, allowing the lender to take those assets to satisfy the amount of the mortgage deficiency judgment. 
 
 
Short Sale vs. Foreclosure: (Article)
 
Short sale vs. Foreclosure is a common dilemma facing the borrowers who are going through financial hardships. Before deciding on any of these, let us explore short sale vs. foreclosure. A short sale is an agreed contract between the lender and borrower whereby both of them voluntarily agree to sell and buy a house at a price much lesser than the actual price of the property.
 
A foreclosure is situation where a lender goes for a public auction of the property following a borrower’s defaults on the property. In short sale vs. foreclosure, the lender’s aim is to recover the full amount of the property in question and the buyer’s aim is to choose lesser evil!
 
However, there cannot be definite answers to what to choose in short sale vs. foreclosure. Different industry experts have different opinions to the issue.
Let us analyze the various consequences of choosing either a short sale or a foreclosure.
*         Credit score drops down significantly on foreclosure as compared to short sale. Usually, short sale is not considered to be a stigma by the credit bureaus. Also, the lower credit score incurred due to the foreclosure will remain valid for 10 years. This means that you may find it difficult to obtain loans in future if you opt for foreclosure.
*         If your credit report does not have 60-day plus late pays, you are entitled to borrow a new loan immediately.
*         Foreclosure can deprive you of buying a new house for seven years whereas the deprivation with the short sale will remain only for two years.
*         If the foreclosure is collectable, the deficiency or the tax after-effects are likely to be much higher than in a short sale.
*         In comparison to foreclosure, short sale offers pretty good chances of negotiations regarding promissory note and deficiency judgments.
*         Short sale mostly eliminates the fear of being pursued for the deficiency by the lenders.
 
Therefore, by and large, it seems that a short sale can prove to be a better option if we think of a future loan purchase or property purchase. But, before making any decision, it is always important that you consult a professional legal and financial adviser who can advise you what to do in a short sale vs. foreclosure scenario keeping in mind your actual situation.  
 
Being Sued for a Deficiency Judgment after Short Sale,or after foreclosure: (Article)
 
Being sued for deficiency judgment after short sale or after foreclosure is one of the worst fears haunting the borrowers who have defaulted on their mortgage. This inspite of the fact that a short sale is something which is preferred over foreclosure as it appears to promise a certain relief to the already stressed borrower.
 
A borrower may find himself in a situation of being sued for deficiency judgment after short sale if, the lender still reserves “the right to obtain deficiency judgment” even after the short sale. Apparently, a short sale is supposed to save a borrower from being sued for deficiency judgment after short sale. The reason is, a short sale is a voluntary agreement between a borrower and a lender whereby both borrower and lender agree to sell and buy a property at much discounted price than its actual worth.
 
In order not to be haunted by this fear of being sued for a deficiency judgment after the short sale, the borrower needs to make sure that the lender gives him in writing that he is relieved from all the obligations on the property. He can also get a signed document by the lender which states that short sale deficiencies are waived in exchange of a pay off, accounted for via promissory note for the deficieny balance or percentage of the balance. The short sale deficiency are also collected as unsecured notes in which case the lender will not be able to legally claim the other assets of the borrower. 
 
But, in case, the short sale deficiency judgment is not waived off, and the lender does not even take into consideration the fact that the home in question is the primary residence of the borrower, you may still be in a situation of being sued for deficiency judgment after short sale.
 
The best possible way to avoid being sued for deficiency judgment after short sale is to get the expert debt negotiator who can bring down the amount of deficiency to be paid by the borrower to the lender. For example, a property is worth $540,000 and it is sold at $400,000. Now, if the negotiator manages to convince the lender to settle at $400,000, and not pursue the deficiency judgment, a borrower is safe from being sued for deficiency judgment after short sale.  
 
Foreclosure Deficiency Judgment: (Article)
  
A foreclosure deficiency judgment is basically a “deficiency judgment” that the lender has obtained from the court to cover the difference on the property that has been foreclosed. Once the court has authorized the lender to collect the unpaid money on the property, the borrower is liable to pay the difference between what they owe and what was sold for in an auction during the foreclosure process.
 
There are three types of foreclosures: a judicial foreclosure, statutory foreclosure, and strict foreclosure. A judicial foreclosure is a court approved sale of a property at a time when a mortgage is the underlying debt instrument for the property.  The process of a judicial foreclosure involves mortgagee issuing notice to the borrower. The notice is served in a case where borrower is in deficiency or breach of contract. Having failed to respond properly, the lender will accelerate the loan against the borrower which in turn will let the lender demand full amount of the loan and extra costs immediately. However, if the borrower fails to repay this too, the lender approaches court to be entitled to sell the property in an auction, beginning the process of a mortgage deficiency judgment against the mortgagee.
 
While dealing with statutory foreclosure, the lender needs to notify the trustee of the default because the contract of the property in question involves a deed of trust instead of mortgage. In such properties, the parties sign a contract where a third-party becomes the guarantor to protect the property. In this type of foreclosure, after the sale of the property, an affidavit of foreclosure may have to be filed, again creating a mortgage deficiency judgment against the mortgagee.
 
A strict foreclosure happens in the states where the court authorizes the lender the title to the property without any public auction or sale. This is called strict foreclosure because it entitles the lender to move the court and to order the borrower to pay off the loan when he defaults. When the borrower fails to pay off the loan on a date specified by the court, the court simply goes ahead and hands over the full title of the property to the lender, also putting the mortgagee into a mortgage deficiency judgment. Therefore, if a lender obtains a foreclosure deficiency judgment, there is no recourse for the borrower but to pay off the loan. 
 
Being Sued for Deficiency Judgment after Foreclosure: (Article)
 
Being sued for a deficiency judgment after foreclosure? If your answer is yes, then you have to deal with being sued for a deficiency judgment after foreclosure.  Of late, more and more mortgage lenders have started using a deficiency judgment to recover the loan balance form the homeowners.  The primary objective of these lenders is to allow them another way of for them to recoup as much of a defaulted loan “deficiency” as possible.
 
If you are in a severe financial crunch, and it is getting exceedingly difficult for you to make the monthly loan payments, foreclosure will become an option for the lender to use to obtain a deficiency judgment against you.
 
Typically, the value of a home usually increases with time. However due to our current economy the likely hood of a home having a lost in value due to the difference between the reasonable market price of the property and the amount that would be generated by its sell then a deficiency is created.
 
When the mortgage lender decides to go ahead with a deficiency judgment against the homeowner then being sued for a deficiency judgment will become a reality. With the foreclosure deficiency judgment in hand, the lender will in some instances sell the deficiency judgment to a collection agency, and then you have a collection agency coming after you. 
 
Foreclosure Deficiency Judgment: (Article)
 
On the internet, you will find articles on foreclosure
 
Whenever, you take a home mortgage loan, you are made to sign a promissory note. It is a simple note where you promise to pay back the debt on time and pledge an asset like a house as personal liability. The moment you stop paying the monthly loan installments, the lender uses the promissory note to obtain an order from the court to foreclose your pledged mortgage property for the purpose of recovering the loan.  The lender will use the same note to obtain a foreclosure deficiency judgment against the debtor.
 
At this point of time, it is essential to understand a foreclosure deficiency judgment.  Once the lender acquires the court order to foreclose the pledged mortgage property, a public auction is organized.  In the auction, the mortgage property is sold off and the money thus generated is used to pay off the debt.  If the total amount collected after the foreclosure sale is less than the mortgage amount owed by the defaulter, than a mortgage deficiency is created, this mortgage deficiency prepares the ground for a foreclosure deficiency judgment against the debtor.  A foreclosure deficiency judgment is a legal tool that lenders use to recover the remaining loan balance which could not be obtained through the mortgage foreclosure process.

 

 

 

 

Your Judgment Deficiency Team