The following informational chart provides an overview of when a borrower may be liable for a deficiency judgment.
So if you have purchase money loans, i.e. the loans you got to buy your house with, don’t fall into the fear trap that the bank will set as far as deficiency judgments. They will have no recourse if they foreclose, so do fight for that deficiency language free short sale approval letter.
California deficiency judgement chart
* If a senior lienholder forecloses on the property for this type of loan, the “wiped out” junior lienholder who no longer has a secured note may not sue on this promissory note.
Note: chart courtesy of car.org
Tagged with: deficiency • deficiency judgement • foreclosure • short sale
Filed under: foreclosure • short sale
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