Waiver of Deficiency
In a short sale, you sell the house for less than you owe on the mortgage.
The difference between what you owe on the mortgage and the sale proceeds
is called the deficiency. When carrying out a short sale, it is extremely
important to obtain a waiver of deficiency from the mortgage lender. Sadly,
many people who complete a short sale without experienced legal representation,
find more stress and confusion after the short sale not realizing that
a waiver of deficiency was a crucial aspect of such a sale. In a short
sale, unless a release of the promissory note is obtained, the bank can
later sue the borrower for the remaining shortfall, sometimes amounting
to hundreds of thousands of dollars. Other documents, such as lien releases,
do not qualify as a waiver of deficiency. Our firm regularly pursues a
waiver of deficiency in each short sale negotiation. This is just one
of the reasons why it is so important to have a skilled and qualified
attorney at your side when considering a short sale.
If the bank files a lawsuit against the borrower for the remaining balance
of the promissory note, the borrower could be facing a huge debt, as well
as potential tax problems. In some cases, the debt will be sold to a collection
agency and the borrower will have to deal with endless and ongoing problems
regarding the debt. Our firm is interested in bringing your real estate
problem to a final resolution that allows you to move forward with your
life and results in the least damage and the most hope for the future.
Our firm endeavors to protect our clients thoroughly from all possible
harm during short sale and all other types of
Contact a Sarasota foreclosure defense attorney today so that you can find out more about a waiver of deficiency.