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The elephant in the jungle, so to speak, is "Deficiency Judgment." Just what is it - and how can you avoid it? Deficiency Judgment is a judgment for the amount owed less that amount received via a sale, short sale, deed-in-lieu of foreclosure or foreclosure. Each state has separate laws dealing with them so, on this page and site, all reference(s) to "Deficiency Judgment." will reference California. Note I am not an attorney and all information on this page and site are not to be construed as legal advice.
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Interesting question was posed during one of our homeowner workshops and that is: does having a loan modification void the protection afforded Purchase Money Mortgage (original loan(s) against a property). Click here for a thread at ExpertLaw.com that discusses just this subject. Bottom line: consult an attorney with any questions about your mortgage (and NEVER use someone other than a law firm to represent you in a short sale). |
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As of April, 2011, over 17.3% of Orange County homeowners are 'underwater' on their home: their loan balance(s) are greater than the value of their home. The Clark Group works with many homeowners on reviewing their options: with so many Orange County homeowners owing more on their home than it is currently valued at, we find that timely, accurate information is most important so that one can make an informed decision. Unfortuneately, for many, their choices become limited by the banks' lack of progress of a loan modification or principal reduction request - and the banks have begun foreclosure proceedings.
(Click here for a chart showing the California Foreclosure Process.)
There are many options available - over a dozen - but not every option may be right for you. We are very experienced at working with Orange County homeowners in distress. If you have missed, or anticipate missing, mortgage payments, we can help. Call us at 949-285-1207: all information will be held in the strictest of confidence.
Not able to attend one of our workshops? Call us toll free at 877-968-4675, email us, or sign-up for our mailing list for notification of all upcoming events, to reserve a seat at one of our free homeowner workshops, or to set-up a private consultation. Always seek legal counsel and a tax opinion before attempting to pursue a short sale, or modify a home loan. A real estate agent cannot give you legal or tax advice.
Reasons to Avoid Foreclosure:
- Many current and prospective employers run credit checks: a foreclosure can put a current position in jeopardy. Also, foreclosure is one of the top items that will put a potential new hire in jeopardy.
- Security clearances, government positions, military and law enforcement, banking, financial services: many employers reconsider security clearances and jobs positions should one be foreclosed on.
- You could end up with a much higher tax liability in a foreclosure than could result in a properly negotiated short sale since, in most cases, cancelled debt will be higher.
- Credit: it will be much tougher - and take much longer - to buy a home with a foreclosure on ones record.
- You may end up with a Deficiency Judgment (the bank may pursue you for the amount you owe less what they received at auction).
Articles of Note:Here are articles and websites dealing with short sales, mortgage fraud, loan modification, and deficiency judgment that we found very informative: |
Experience Makes All The Difference
You are not alone: we are very experienced at working with homeowners that have either missed payments, or are about to. If you are experiencing issues with regard to your mortgage, we can help. Call us at 949-285-1207.
Sign-Up For One of Our FREE 'Save Your Orange County Home' Seminars:
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| Thanks again for visiting our site. We look forward to helping you buy or sell real estate this year! |
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