It is the responsibility of the Tenant to notify the Landlord of a deficiency in the premise.

Now they seek deficiency through collection agency.

I was wondering about the suggestion to ask for $500 or so up front in case the seller backs out of doing a short sale when they find out there will be a deficiency judgment.

If there is a valid lease at market rate rents, etc. they tenant now has six months as most of you are aware.Good points above, the best way to help is to probably find them anouther home before they have a foreclosure of give a deed in lieu of foreclosure, which by the way might be thier best option...give them the deed, avoid the foreclosure and any deficiency!

You friend could give the property back if the lender would accept it and that would avoid any deficiency judgment.

If they think they can get money from the owner, they may set the opening bid lower and file a deficiency.

Below are the benefits of using Land Trusts in your real estate business.Benefits of a Land Trust:Liability protectionPrivacyKeep purchase price secretKeep sale price secretKeep change of ownership privateProtection from judgmentsProtection from liensAvoiding deficiency judgmentAvoiding condo and homeowner association judgmentsAvoiding probateAvoiding lawsuitsEase of controlEase of managementEase of negotiationImproved financial statementSaving on title insuranceEase of transferability of interestsSimplification of making giftsLimiting liabilityAvoiding partitionEase of foreclosureSafer lease/optionsAvoiding personal problems of beneficiariesAvoiding real estate brokerage lawsAvoiding seasoning problemsLoaning moneyBuying foreclosuresBuying distressed propertiesEquity strippingHolding judges property

They are deficient in all that lends character.

I am an advocate of Joint Ventures to cure any deficiency 5 Lenders tell you no keep asking30 lenders tell you no...really ponder what your trying to do.

I find that the best investors and rehabbers, look past the deficiencies of the property and see the potential it could be.