Posted: Mon Dec 14, 2009 7:46 pm Post subject: No Defieciency Judgement
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We had a fair short sale offer submitted to our servicing lender, requesting for a "No Defieincy Judgment" on the balance. We were asked to remove this request from the
addendum, or the servicing lender would not review our file, and would actually close the file. After two consultations with different attorneys: one stated not to remove the NO deficiency, becuse the lender could come back up to 10 years to collect the balance plus expenses.
The second attorney said to chance it, the bank probably would not pursue. In the mean time of one week, we lost the buyer, who was tired of waiting. Now we are faced with the best options ( another short sale offer), or perhaps a Deed in lieu of Foreclosure. Is it certain if the lenders agree to the DLF, that the balance would not
be able to be collected up until 10 years? Or would it be smarter to try for another short sale offer. Fannie Mae
hold the original loan, is their anyway we can deal directly, or do you think Fannie Mae is setting down the rules in our case?
If the lender accepts your deed in lieu request, then you would be able to get rid of the property and the lender will also forgive the deficient balance resulting from the sale of the property. The lender will not be able to sue you for it in the future. However, it would affect your credit score badly compared to a short sale. A deed in lieu of foreclosure would reduce your credit score by 250 points. _________________ Procrastination is the enemy of your financial success
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decogoddess
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