Systematically, this would significantly lower mortgage payments, increasing household cash flow, thus directly stimulating the economy through more consumer buying power.Increasing real buying power as opposed to the borrowing power that some economic strategist call “tackling the credit freezeâ€, is a better long-term approach to maintaining a productive economy.After acknowledging that the major investment banks who masked these mortgage-backed securities for so many years have either failed or converted to more regulated entities, the inappropriately inflated investor confidence is the only other major intangible deficiency plaguing the current financial crisis.

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.

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.

Around here, the lender often files a deficiency in associate with the low bid.

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.

Again, if any sale is above the increasing costs of holding the property and the original bid it can be due the owner but while there can be a claim made by the owner for any overage, this is seldom done, if the price is less, they may seek a deficiency against the borrower or eat the loss (and get bailed out by tax payors or insurance, LOL) State law generally governs the application of funds and federal for federally insured loans.

This way you as a buyer know the bank will already accept at that price.It is important as well knowing that the bank will not pursue a deficiency against the seller.Sellers have squashed these deals before when the bank will not give them their terms.In that case you can try to buy the note at a discount and then give the seller what they want in terms in exchange for signing over the deed.You just have to know timelines and foreclosure costs for your state to protect yourself.The condition of the property is critical along with lease agreements in place.Your returns can be severely diminished over time if you do not allocate for immediate repairs needed and the reserves needed for capital items down the road.Example you plan on holding for 15 years.Based on building inspection the roof has another 5 years left max before replacing.So you factor in a cost in year 5 for the replacement with an estimate on what labor and materials will cost at that time.Short sales can be great deals if most of the work is already done upfront.If not you can spend up to a year in some cases and the deal not work out.Good luck

Apparently there was a litigation between the HOA of the property and the builders which started on 2008 (townhouses were built in 2003) at the transition period of the property to the HOA and during Common Elements engineering inspections it was found out that the buildings had numerous deficiencies in the construction such as improper construction of decks and deficiencies in the construction of the exterior cladding system stairs and stoops.

You still need a general contractor doing the work as in a 203k but the condition  of the  house can be poor as long as the rehab dollars address all deficiencies.

Lender may foreclose and sell for 700k, then go after deficiency of 100K.                     ORSue to collect the 800 due on the note and let borrower KEEP the property.