Short Sale Mortgage Deficiency - Foreclosure Deficiency Judgment

A mortgage deficiency is when you owe more to your lender than the sale of your home. If you have gone through a short sale of your home because your home was worth less than what you paid, chances are that you have a mortgage deficiency. If you have been foreclosed upon, you may also have a deficiency. In some cases, a lender can get a foreclosure deficiency judgment at the same time of the sale of the property. All states operate differently when it comes to law regarding mortgage deficiency. A mortgage deficiency can manifest itself into a larger debt for a home that you just lost and still need to make payments on, thus eating further into your finances. In some states, the court will allow the lender to not only seek out the amount of the mortgage deficiency in a foreclosure deficiency judgment, but also the amount of money in legal fees for the foreclosure process.

Obviously, if you are facing a foreclosure deficiency judgment, which is issued through the court system, you need help. You have very few options when it comes to this type of judgment and the lender can play hardball and go after your wages, other assets, your bank accounts or anything else you own. You need to get help right away if you have a mortgage deficiency so that this can be negotiated. A lender will usually be willing to settle for less on a debt to get it off their books. When you hire an experienced firm to handle this for you, you can then get a better settlement amount than if you try to negotiate on your own behalf. Many mortgage companies will not budge when they are dealing with a borrower with regard to a mortgage deficiency and will demand full restitution. However, when you hire an experienced firm to negotiate for you, you usually get better results and can get the matter cleared up. This can help you in the future with your credit as well. Your only other option is to file bankruptcy which further damages your credit and stays on your report for ten years.

A foreclosure deficiency judgment can cause you financial hardship as they can go after any of your assets and even your wages in order to get their money. You need to avoid this and get the matter settled as soon as possible if you have a mortgage deficiency after the short sale of your home or after you have had a foreclosure. The sooner you take action and get someone to help you negotiate this matter, the better it will be for you and the sooner you can get on with your life and repairing your credit. A company that deals in deficiency judgments will be able to work in your favor to make sure that you get the best settlement possible and enable you to save money if your lender is looking to collect on a mortgage deficiency against you for a home you lost due to foreclosure or a short sale.

By: vikram kuamr

If you have a Mortgage Deficiency on your home, this means you still owe the lender for the money you borrowed less than the price the house was sold for in foreclosure or a short sale. You can negotiate a Foreclosure Deficiency Judgment so that it does not turn into a further financial hardship by going to Judgment Deficiency.

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