How To Avoid A Deficiency Judgment When Doing A Short Sale

Real Estate Broker/Owner with Maxus Realty Group - Broker 301-246-0001 Broker - Realtor - CEO for Maryland DC and Virginia Short Sales Agent 240-426-5754

How could you assure yourself 100% from a deficiency judgmentafter a foreclosure, a deed in lieu of foreclosure or a SHORT SALE?

Before I can tell you how to avoid it 100%
You need to know exactly what a deficiency judgment is
Very simple..
It is what you signed for as a loan when you originally purchase your property
What the banks gets after the disposing of. . It’s their loss that could become a deficiency judgment

It doesn’t matter if they dispose of the property via

Foreclosure: At the court steps, it gets sold and you could get the bill for the difference.
Deed in Lieu: Even if the first lender approves this and promised not to pursue a deficiency against you, BEWARE OF THE SECOND . they are not happy that are excluded and will receive ZERO at the end. .they still have the right to come after you unless there was some kind of prior agreement with them.
Short Sale: When a short sale was approved, they may still preserve the right to pursue. . Unless is specifically addressed on their final short sale approval.
So, how can you be certain that the lender will never come after you with a deficiency?
It’s called The HAFA SHORT SALE
As a matter fact, every short sale that we do must go first to trough the HAFA test. We want a HAFA approval for our client because it guarantees that the lender will not seek adeficiency judgment against our them. . EVER!
As you know, that could make any homeowner happy. .in some cases we are getting a deficiencies waive on over a hundred thousands of dollars that the lender promises not to pursue!
If you are in MD DC or Virginia, we will be happy to help you see all your options because no TWO SHORT SALES are ALIKE

Fernando Herboso 240-426-5754
Realtor Expert in Short Sales
for MD, DC and VA 


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David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

Great post and great advice for those in this very unfortunate situation.



May 20, 2012 09:41 AM #1
Barbara Altieri
Kinard Realty Group - RealtyQuest Team, Fairfield and New Haven County CT Real Estate - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

Fernendo -- This was a very welcomed addition into the short sale arena.  Being guaranteed no pursuit of deficiency is certainly a BIG HAFA advantage.  Prior to HAFA that was always the first thing we looked for on the short sale approval.

May 20, 2012 10:18 AM #2
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Fernando.  It is always the 2nd & 3rd lien holders that are the problem.  Great strategy using HAFA.

May 20, 2012 08:33 PM #3
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Fernando Herboso - Broker for Maxus Realty Group

301-246-0001 Serving Maryland, DC and Northern VA
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