I am a broker in California and Florida. It upsets me that nothing has been done by the President or any other entities to put a ban on Deficiency Judgements that banks can get from their clients. In Florida and many other states that use Foreclosure Procedures a bank is able to file a Deficiency Judgement against the seller for monies owed but not received. Not all banks are using them but its important to put in the Short Sale Contract verbage that the bank can not seek a Deficiency Judgement after closing. In California a bank cannot file a deficiency judgement on the first or second mortgage.
If your seller can't afford the payments, you can be sure they will not be able to afford another judgement against them. They have been tramatized enough already!
Apparantly my verbage was off a little while ago and I have corrected it. I would just like to see a fair and easy system put in place to help people who are in trouble that is equal in all states. This is my opinion and one I know my friends and family agree with who have gone through Foreclosure and Short Sales in Florida!
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What have you all found to be good language to use to get the bank to forgo any deficiency judgement or pursuit? And, how has your success been? At what stage do you hit them with it?