SHORT SALES WITH HAFA: DEFICIENCY JUDGMENT.. NOT SO SCARY ANYMORE
The HAFA Program became effective April 5th 2010, servicers may participate immediately, or as soon as is practical. The primary options available through HAFA include Short Sale and Deed-in-Lieu of Foreclosure.
With HAFA. . .
Lenders will not pursue a deficiency judgment for the shorted amount.
Your home is worth $300,000 and sell it as a SHORT SALE with HAFA . .
PROBLEM: . . .but your Mortgage is $500,000
There is a $200,000 difference between the two. . .that is the shorted amount that could become a DEFICIENCY JUDGMENT AGAINST THE HOMEOWNER
Lenders before HAFA have reluctantly agreed in a case by case basis to remove this shorted amount after a short sale.
With HAFA, now Lenders have agreed 100% NOT TO PURSUE A DEFICIENCY JUDGMENT AGAINST THE HOMEOWNER
In another words, you are not losing your home, you simply selling it and BREAKING EVEN!
The real definition is:
A deficiency is the difference between the fair market value of the property and the amount received, providing the amount received is less than the amount owed.
This applies specifically for my State of Maryland.
Some other States are exempt from deficiency judgments . .
Find out if your bank is participating in the HAFA PROGRAM here.
HAFA is for you when you simply can not afford your house anymore and a foreclosure is eminent
and also a Gold Member Certified Default Resolution SpecialistTM with (CDRS)
You can call (Fernando Herboso) directly @ 240-898-1848 ext #1 or email : Fernando@Herboso.com
We can help you directly in Maryland, DC or Virginia