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How does a short sale versus a foreclosure affect the deficiency judgment?

April 26, 2017affect Deficiency foreclosure judgment sale short versus

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How does a short sale versus a foreclosure affect the deficiency judgment?

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If your short sale is handled successfully, the lender may give up the right to pursue a deficiency judgment against you. If the lender does pursue a deficiency judgment against you after a successful short sale, the amount will be considerably lower because your home was sold at a price closer to market value than that of an REO (Real Estate-Owned) sale. In all foreclosures, with the exception of those states without deficiency, the bank has the right to file a deficiency judgment against you.