regarding deficiency judgments - Posted by fran

Real Estate Investing Real Estate Law
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Posted by Rich-CA on March 08, 2009 at 07:26:36:

A short sale is an actual, voluntary sale. The only difference is the lender agreeing to take less than owed. There would be no court involvement and thus no “judgment”. The short sale agreement would determine if a personal promissory note would be required for the balance, but until you default on that note, there would be no forgiven debt and thus no 1099.

There also would be no right of redemption as a SS is voluntary. You can only have a redemption if its a forced sale.

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regarding deficiency judgments - Posted by fran

Posted by fran on March 08, 2009 at 06:53:01:

Hi somewhere in the recesses of my mind I remember reading that if a mortgage company gives a 1099/deficiency judgement after a short sale that it changes the amount of time that a homeowner could redeem their property. I’m in NJ and don’t remember whether this is state statute, nationwide, or I’m dreaming… any thoughts?

thanks, Fran