One of the biggest fears of borrowers facing foreclosure is the bank’s right to pursue them for the difference after the foreclosure is done.
A Short Sale May Relieve You Of All Obligation on the Debt
Many borrowers do not realize that a short sale could lead to full forgiveness of the deficiency. That means the borrower can put the debt behind them and never have to worry about paying any of it back.
In a short sale the lender lets the house sell for an amount SHORT of the payoff.
A short sale provides the possibility of “forgiven debt.” If the house goes all the way to the foreclosure auction, there is a higher risk of deficiency judgments against the borrowers.
A post-foreclosure deficiency judgment could lead to wage garnishment and the bank sweeping the borrower’s bank accounts clean. An ideal short sale can avoid that.
If you are in the Louisville, Kentucky area and you are worried about your mortgage payments, please call me any time at (502) 664-7827. It may save you tens of thousands of dollars and restore your peace of mind.