In lending there are compensating factors, if a borrower is weak in one area they might make up the deficiency in another area, say you only have owner experience in 3 SFDs, but your net worth is twice the purchase price, that will probably fly if everything else is decent.You can get creative, you can use seller financing, but unless the seller is family, most all investors who own multis are not going to be walking away taking a note with 5% down or doing some contract, generally there will be some real money involved.

The appraiser must identify physical deficiencies that could affect the safety, soundness, or structural integrity of the property as part of his or her description of the physical condition of the property.

Goodmorning,How are Deficiency Judgments and the Mortgage Forgiveness Debt Relief Act effecting the amounting of short sales that are on the market and the deals that pertain to them with the sellers.

Since the well is on your property and could be used in the future, if it was  me, I'd call an experienced well driller in to correct any deficiencies and secure the surface.

If your mother still owns the home, she needs to a short sale, unless the loan is non recourse, or there is no deficiency by state law.

Consider too, the property could have been pledged on a commercial loan and the judgment for the million plus can arise from other debts, not just a mortgage.If the property value is well under that judgment, it's obvious the home was additional collateral.So, no, you don't have to bid a million plus, unless that is the entry bid by the lender, that would put the auction in question, but that's another issue if the property is not worth near that amount.The lender can sell the property for a satisfactory bid, near market and seek the deficiency remaining.

If the roof leaks and tenants are raising heck, and the borrower is responsible for any deficiency in the end, the bank may prefer to empty the place and sell the building, that happens.

Only under certain circumstances can your agreement be terminated, violations of law, property not up to standards, drugs, etc. and usually time mus be given to cure any deficiency, especially when a tenant is in place.Yes, it could arise from being a trouble maker, but they still need to follow the rules, so you may be dealing with the Regional Office and report the current issue about that office.

Trash your credit with a short sale due to a deficiency you state to be "several thousand" dollars??

If for some reason they could not be made whole they can pursue a deficiency judgement and then have the ability to attach liens to property and garnish wages ect to recover losses.