Hi, I’m Toni Patillo with Toni Patillo and Associates, your leading Venice short sale agents. Today we would like to talk about deficiency judgments and what exactly they are. A deficiency is what we call the difference between the principal balance due and the amount received from the sale of your property. It is considered a deficiency only if the amount received is less than the amount owed. As your Venice short sale agent, we will help you determine if the bank can pursue a deficiency judgment after your short sale or foreclosure is complete. It depends on whether the promissory note makes the seller liable for the debt. As your Venice short sale agent, let’s look at deficiency judgments in California. There is some great news for California homeowners is that all purchase money loans on a one to four unit residential property are exempt from deficiency judgments.
Some loans take out after the home was purchased by a refinance or second mortgage may be subject to a deficiency judgments under certain conditions. One is if the homeowner goes through a foreclosure, then they could be liable for the deficiency. There is however, a three month time limit for deficiency judgments under a judicial foreclosure. Once you decide to complete a short sale, it’s time to look for your Venice short sale agent. Why not choose us for all your Venice short sale needs. To get a better idea of what exactly you qualify for, it would be best if we meet in person to talk about your specific situation. Please contact us today with any questions you have about the short sale process. We would love to be your Venice short sale agent, and we look forward to speaking with you soon.