Ridgewood Short Sale Question: Can My Lender Force Me To Repay Them?

Real Estate Agent with RE/MAX Properties - Saddle River

Ridgewood NJ – A lot of homeowners want to short sale and walk away from the upside down debt. They don’t feel that it is their fault the housing market crashed.

We get the following questions a lot.

“If I short sale, then how likely is it that my lender will sue me to repay them?”

“Will my lender garnish my wages or take money out of my bank account?” So I will answer those questions in today’s post.

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

The answer is that it is unlikely that any of that will happen.

Here is the #1 reason this usually doesn’t happen. About 65-70% of all short sale lenders will allow you to walk away owing nothing. The remaining lenders are usually too busy or disorganized to do anything.

Lawsuits cost money and they usually don’t get enough money back to justify the expense.

Here is the #2 reason this usually doesn’t happen. You can’t squeeze money out of someone who doesn’t have any money. The lenders know (from past experience) that if they push a debtor to hard, then that person will just declare bankruptcy.

So the lender gets no money anyways, but they lost money on the lawsuit and collection tactics. (Bankers don’t like to lose money.)

In addition, wage garnishment is difficult. There are many different exceptions and protections against wage garnishment.

For example, if the person being garnished is the main provider for a family, then the laws are often written to stop any garnishment against them.

This is why 80% of all judgments expire uncollected. Even though the legal system gives lenders lots of collection rights most judgments still expire unpaid.

I know these stats may not be very comforting. If you are still concerned, then contact a good bankruptcy or consumer defense attorney.

Thinking about a short sale? I can help you short sale your property and get back on your feet. Send me an e-mail at jlockard@remax.net. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail. If you prefer, then you can call me at (201) 825-6600 x343 or on my cell at (201) 674-3114. If you prefer, just fill out the form by clicking the words, Contact Me below:


Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Ridgewood Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, James Lockard.

James is a Real Estate Agent at RE/MAX Properties.

Phone: (201) 825-6600 x 343 Cell: (201) 674-3114. jlockard@remax.net

View My homes for sale at www.BergenCounty-Homes.com.

James Lockard specializes in loan modification assistance and short sales in Ridgewood New Jersey. Ridgewood Loan Modification Help, Ridgewood short sales. Ridgewood Short Sale Realtor Short Sale Realtor. Ridgewood NJ Short Sales. Ridgewood Realtor

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Important Notice

James Lockard, RE/MAX Properties, and the Stop Foreclosure Institute are not associated or affiliated in any way, shape, or form with the government. Our services have not been reviewed, endorsed, or approved by the government or your lender. Most lenders willingly work with agents on short sales. Why?

Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.

However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.

If you stop paying your mortgage, then you could lose your home and damage your credit. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.

The views expressed here are Lockard’s personal views and do not reflect the views of RE/MAX Properties.

This information on Ridgewood Short Sale Question: Can My Lender Force Me To Repay Them? is provided as a courtesy to our viewers to help them make informed decisions.

Comments (3)

Brian Schulte
Allison James Estates & Homes - Sierra Vista, AZ
SFR, Sierra Vista, AZ

The idea is to get a full release from the lender during negotiations.



Sep 30, 2011 03:21 AM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

A few years ago a short seller may likely have received a 1099 for the amount forgiven. The Bush administration suspended that. I think the Obama regime extended that.

Sep 30, 2011 03:21 AM
Joy Daniels
Joy Daniels Real Estate Group, Ltd. - Harrisburg, PA

Thank you for the information.  I know it's up to each lender, certainly is god info to know.  I have had good success with banks not requiring the seller to pay the difference.

Oct 02, 2011 02:24 PM