Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

RE/MAX Preferred Properties
[email protected]

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Knoxville Short Sale Question: What Is Deficiency Judgement?

short_sale_vs_foreclosure-150x150In our Ask the Expert Section, we recently received the following question from Johnnie, he asks, "I've been out of work for the last year. It has made paying the mortgage on my Knoxville home very difficult. I've drained most of my savings to help try to make my mortgage payment and tried to work with my lender to complete a loan modification, but  I'm afraid foreclosure may be inevitable. I've considered doing a short sale but am afraid of the consequences. If I complete a short sale, can my lender pursue me for a deficiency judgement?" The decision to do a short sale on your Knoxville home is a big one. While a lender is able to legally pursue you for a deficiency judgement, or the difference that is owed after the sale of you home, in a majority of cases, the lender waives their right to pursue you for a deficiency judgement after the sale has been completed. Prior to the sale being completed, you will want to confirm that your lender has waived the right to pursue you for the difference of what is owed. It is important to remember that you can still be pursued for deficiency judgement if you go through foreclosure. A Knoxville short sale not only allows you to walk away from the home debt free, avoid the credit ramifications of foreclosure, but can also get your lender to agree to not pursue you for a deficiency judgement. If you end up in foreclosure, you lender will not necessarily agree to not pursue you for a deficiency judgement. Unsure of what the Knoxville short sale process is like? Consult with an experienced real estate professional help guide you through a the process.  If you have questions about the consequences or legal ramifications, you should consult with an attorney. Are you wanting to know your options to avoid foreclosure on your Knoxville home? If so, please do not hesitate to give me a call at 865-696-9002 or send an email to [email protected]. My team and I are dedicated to helping Knoxville homeowners explore their options to avoid foreclosure. All of our services are provided at no cost to you.

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