What Is A Deficiency Judgement In A Charlotte, NC. Short Sale?

Everytime I talk to a potential home seller about a short sale; the question arises about what does the bank do about the difference between what we owe and what they accept? Well the term the lienholders use is deficiency judgement. A deficiency judgement is when the lienholder accepted less than what was owed on the house. Thus, you are left with a deficiency. The lienholder has recourse to ask for a deficiency judgement making you liable for that difference. The deficiency judgment lien is calculated based on the fair market value of a property rather than the actual price of the property. What this is means is that if a homeowner’s property, which secures a home loan, has a fair market appraisal value of $200,000 and sells the home for $150,000, the borrower will be subject to a deficiency judgment in the amount of $50,000, if a lender chooses to pursue the matter. Doing A short sale make sure that you and/or your Realtor ask for a deficiency jusgement waiver when negotiating your short sale....Most banks will accept one if you ask and negotiate it in from the onset. Dave diCecco Realtor/Broker www.davedicecco.com