Be careful when you short sale or have a foreclosure because Lenders are increasingly seeking to collect unpaid mortgage balances through deficiency judgments against borrowers who foreclosed or secured short sales.
The FDIC reports a 48 percent surge in mortgage recoveries to a record $1.01 billion and a nearly twofold increase in home-equity loan recoveries to $392 million between January 2009 and September 2009 from a year earlier.
Real estate attorneys are saying the main targets for deficiency judgments are borrowers who were current on their payments but abandoned the home because their loans were underwater.
So be careful before you buy and bail...
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