Is California an anti-deficiency statute?
California’s anti-deficiency statute[ii] prohibits a creditor from collecting a deficiency judgment — that is, the difference between the amount of indebtedness and the fair market value of the property — following a nonjudicial foreclosure, even if the property is sold for less than the amount of the outstanding debt.
What is deficiency Judgement short sale?
A deficiency judgment is a court ruling placing a lien on a debtor for further funds when the sale of secured items falls short of the full debt owed. Depending on your state, it may be that during a foreclosure deficiency judgments are prohibited.
Why would a lender waive a deficiency claim?
A waiver of deficiency means that the mortgage company has agreed not to sue you for the unpaid balance that may remain after the home is sold (whether via a foreclosure sale, short sale or deed in lieu of foreclosure).
Do I owe money after a short sale?
In California, you can only do so after a short sale, but remain liable for the debts after a foreclosure sale. Thus, deficiency judgments, or these debts you may still owe after your home was sold, can usually be discharged in bankruptcy.
Who pays closing costs on short sale?
These seller closing costs include things like property transfer fees, realtor commissions and attorney or title company fees. In a short sale transaction on the other hand, the seller’s closing costs are usually paid out of the money the buyer brings to the closing.
How low will a bank go on a short sale?
A price that’s 5% to 10% below market value is typically a good number to put on the table. Venturing further down could be dangerous territory. One last factor to consider when finalizing a short sale offer is interest rates, especially if they are unusually low at the time the offer is submitted.
How long does it take for a short sale to go through?
How long does a short sale take? One California-based agent has estimated it takes about 60 to 90 days on average for a lender to approve a short sale deal — and that’s after receiving the full offer. However, that’s just one agent’s estimate.