Deficiency Judgements

**LVShortSales** · 09-23-2009, 04:50 PM

Looking to get a read on from agents and attorneys on deficiency judgments on sellers of short sales. Here in Nevada, lenders have up to 6 years to pursue a deficiency judgment. A lot can change over the course of 6 years. A new job, a new home a boat. The home owner already lost their home once, tried to do the right thing by helping the bank avoid foreclosure. Is it fair to have this hanging over their head. Should they be sued? Is the homeowner completely at fault? What responsibility did the lender have in the process, did they loan money to someone they shouldn't have. Did they do a no doc loan? Would you lend 250k to a guy who said sure I make 100k per year but still need a 100% loan? Did the lender then take 8 months to approve a short sale while the value of the home dropped 20%. I don't think it is as cut and dry as you owe me 100k because I wrote off 100k. Has anyone heard of them coming after them?

**jimmyjhonson** · 04-29-2011, 06:06 AM

When a judicial foreclosure can call note, taking the property may not be enough to satisfy your debt. The lender will obtain borrower's lack of action against. Lack of solution requires that if the creditor has received all amounts due from the sale of property foreclosures, debt balance should be paid to the borrower.

**rduncan610** · 05-01-2011, 03:44 AM

Many sort sale agreements forgive the balance of the debt so there is no deficiency. If there is a remaining deficiency, it's characterized as an unsecured debt and the repayment should be addressed in the agreement. Not sure why there is a deficiency judgement with a short sale? But maybe Nevada law is different on this from Texas.

Richard Duncan