A couple of years ago most of my short sales would have ended with no deficiency judgments for the home seller. Nowadays that's still my ultimate goal, but it's not quite the foregone conlusion that it used to be. A lot depends on who the lien holder is and the financial condition of the seller. Some lenders will not change the language on their approval letters no matter what you threaten. That being the case, I always ask my clients prior to listing their home for short sale what their plan is regarding deficiency. If the approval letter comes back without any guarantee that there will be no deficiency possibility, what do they intend to do? This helps me better advise them of the chances of success for a short sale. Some people will still likely continue because their credit is so important that they are willing to risk the deficiency possibility. Some people have both a first and 2nd and in some instances the 2nd can still pursue them for a judgment no matter what (at least in my state).
This is also a question any buyer's agent should ask a listing agent on a short sale. "What are the sellers plans if there is a deficiency?" This way if you know the seller won't continue with a short sale unless the lender agrees to "no deficiency" and the bank is one that won't guarantee this, then the buyer's agent's client won't likely get the house. They should then go ahead and move on.
If you're a homeowner who is in distress and need some advice in the state of Oregon, please Contact us!
If you're an agent representing a buyer in Oregon, give us a call. We can help.
If your an agent representing a distressed seller in Oregon, give us a call. We can help
Comments(0)