Bergen County Short Sales: The Most Common Types Of Loan That Do Not Require A Deficiency

Real Estate Agent with RE/MAX Properties - Saddle River

uncle-sam-bailoutBergen County NJ – OK, let’s talk about the most common types of loans that do not require a deficiency on a short sale. The first common loan type is a Fannie Mae or Freddie Mac loan.

I’ll call them Fannie & Freddie in this post. Freddie & Fannie are different quasi-governmental entities that own mortgages. For our conversation, they are very similar in the way they handle short sales.

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

First, you need to find out if Fannie or Freddie own your loan.

Fannie Mae has a website with a lookup tool. Go to this site to research if your loan is owned by Fannie Mae:

Freddie Mac has a lookup tool here:

If your loan is owned by Fannie Mae, then you usually do not have to worry about a deficiency. Fannie Mae’s official policy is that they will forgive the debt if a seller has a genuine hardship.

Fannie & Freddie’s policies are basically the same. They state that they will pursue a short sale seller if they have they can afford to make the payment or it is an investment property.

You need to keep this in mind if you are strategically defaulting. One problem with some of these short sales is that the loan was insured by Private Mortgage Insurance, also called PMI.

The PMI companies have the ability to approve or veto the short sale offer. Many PMI companies ask for a promissory note before they will approve a short sale.

The good news is that the promissory note is usually less than the amount lost. For example, we recently saw a lender lose over $100,000 on a short sale. They asked the homeowner for a $20,000 promissory note.

Are you willing to pay $20,000 to walk away from $100,000 in debt? I think that’s a good bargain.

If you have a Fannie or Freddie Loan and have a genuine hardship, then you can be pretty confident that you have a very good shot at being able to walk away without a deficiency.

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 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 Bergen County 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 Realtor-Associate at RE/MAX Properties.

Office: (201) 825-6600 Cell: (201) 674-3114.

View My homes for sale at
Find Information about Bergen County Real Estate

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

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

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 Bergen County Short Sales: The Most Common Types Of Loan That Do Not Require A Deficiency is provided as a courtesy to our viewers to help them make informed decisions.

Comments (8)

Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

Fannie Mae and Freddie Mac handle short sales differently. When you move into the HAFA arena, they are dramatically different, so it is important to find an agent like yourself who understands the nuances. The biggest problem with Fannie Mae tends to be if you're closer to the foreclosure date than the short sale closing date, Fannie Mae, in its generous consumer-oriented policy, will choose foreclosure. In other words, there is no consumer-oriented policy at Fannie Mae.

May 01, 2012 10:57 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for the detailed information. I will bookmark this and read it again.

May 01, 2012 10:59 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Here is a post that supports why you need to get a professional involved when Real Estating...good post and points

May 01, 2012 11:54 PM
Donald Reich
Prudential Centennial - New Rochelle, NY

You bring up a lot of good points here. The bottom line is every situation is different. This process can be very complicated, and you need to stay on top of your bank the whole way through.

May 02, 2012 02:34 AM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Excellent post and full of very helpful information.

May 02, 2012 01:10 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

James - Good information.  We're pretty lucky here in California with regards to deficiencies because of our laws.

May 02, 2012 02:29 PM
James Lockard
RE/MAX Properties - Saddle River - Allendale, NJ
Realtor, Allendale, NJ

I think we all agree. Each loan is different and needs to be analized and handled accordingly.

May 02, 2012 11:41 PM
Rob Spinosa
Guaranteed Rate, Marin County, CA - San Anselmo, CA
SVP of Mortgage Lending, Marin County

Very good information and I found it helpful since I don't deal with the details on that side of those transactions.

Thank you!

May 03, 2012 12:06 AM