Deficiency Judgments
Thanks for the responses to my post yesterday. No one responded to my question about defeciency judgments.
Please, can any one address the issue of how the lenders might treat the owner? Will they likely file deficiency judgments against him whether it goes through with the foreclosure or whether I do a short sale?
How can I convince the owner that a short sale is any better for him than the foreclosure?
Thanks
You should always disclose the possibility of a DJ with no guarantees one way or the other. It's been my experience that if the seller shows concern about the DJ they are not motivated enough. You should not be trying to convince them beyond the fact that you can stop the FC and minimize damage to their credit. They are either motivated or they are not. Actually I'm not completely convinced a seller IS better off doing a short sale if the lender does persue the DJ or 1099's them.
Thanks for lighting a fire under my behind. I'm in third rewrite for an essay,
How to address the concept of the Short Sale with a Homeowner in Distress.
I'm hopeful that it will address your concerns... and shed some light from the Sellers' perspective.
A foreclosure is much worse on a person's credit than a deficiency judgement or a deficiency judgement and a bankruptcy. Ask any mortgage broker.
Brenda