Oh, one more way that might be used in states that allow them, is getting the deficiency judgements, none of the states I do biz in have them normally.

I was recently told by a realtor that she could not refer deals to me because the seller felt that my lower offer would result in a higher deficiency and the resulting proportionate increase on a promissory note to the seller.

But if a foreclosure occurs after BK and there is a deficiency, the banks are still allowed to sue for the deficiency.

If you live in a state where the bank can sue for deficiencies, what is the actual likelihood of a unemployed, broke homeowner going through a short sale being sued for deficiency?

If you sell the property for less than the amount owed, you may seek a deficiency judgement for the balance.In most states, borrowers have a redemption period where the borrower can redeem the property for amounts owed.

Well it obviously would depend on a lot of things, but I certainly wouldn't give it back if it was recourse to me and would carry a deficiency judgment.

If the start the bidding lower (usually if they think they can get a deficiency judgment), they may get other bidders.

The attorney is also available to negotiate any deficiency judgement and get them removed by the lender.So, legal services, and a 94% success rate, for no charge (except to the lender).

But by doing that they avoided dealing with two liens on the house that the bank would have had to pay and they also placed a deficiency judgment on the previous owner.

Apparently PMI companies are pursuing deficiency judgements against people who walk away from their mortgages.