A deficiency judgement is one that allows your lender to sue you for the difference between either what they are owed or the current market value of the home and what was paid for it at the foreclosure auction. The laws regarding a deficiency judgement after foreclosure vary from state to state so it is important to know how the process works in your state before proceeding. In many cases, lenders do have the right to pursue this type of judgement.

Talk to Your Bank
The best way to avoid a deficiency judgement after foreclosure is talk to your bank before the foreclosure is complete. Ask them directly if they will pursue a deficiency judgement against you. Ask them if they would agree to sign legal paperwork waiving their right to pursue a deficiency judgement. If you are doing or at least trying to do a short sale on the home, your lender may be more inclined to waive their right to this kind of judgement. Talk to the realtor handling your short sale to see what help they can provide. If you are doing a deed in lieu of foreclosure, you will also want to ask your bank to include this as part of the paperwork. If you are simply walking away from your home and have not tried to workout a deal with the bank, it may be difficult to get them to agree to this.

Check With an Attorney
If you have tried to talk to your bank about this issue and they either will not talk to you about it or refuse to waive their rights to a deficiency judgement after foreclosure, check with a lawyer to see what, if any, options you have. They should be able to give you a clearer idea of whether or not the bank will pursue a judgement in your case. They may also have suggestions for how you could get your bank to agree to not pursue one.

The good news is that banks do not often pursue a deficiency judgement after foreclosure. In states where there is a non-judicial foreclosure process, the bank would typically have to file a lawsuit against you for the deficiency judgement. This takes more time and legal resources on their part. If you live in a state where judicial foreclosure takes place, the deficiency judgement can sometimes be included in foreclosure case. It is worth your while to check to see if this is the case in your situation.

Disclaimer: The author does not guarantee the accuracy of the information provided in this article and is not liable for reliance on this information. In using this article, you agree that its information and services are provided “as is, as available” without warranty, express or implied, and that you use this article and the information contained in it at your own risk. You agree that the author has no liability for direct, indirect, incidental, punitive, or consequential damages with respect to the information, services, or content contained in this article.

Foreclosure is enough of an issue to get over without having to worry about a deficiency judgement after foreclosure. Try to resolve this issue before your foreclosure process is complete. Get more information at http://www.stopping-home-foreclosure.com/DeficiencyJudgementAfterForeclosure.html

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It’s unfortunate but foreclosed homes currently represent half of all of all the homes sold in the US. Before the bank forces foreclosure there is in a period called pre-foreclosure which can last anywhere from two to twelve weeks. Many of the real estate gurus have made a fortune on pre-foreclosures and consider it as one of the best, if not the best, way to invest in real estate.

Many houses that are ‘for sale by owner’ are houses that are in a period of pre-foreclosure. The lenders sometimes allow the homeowners to try to sell their home before foreclosing it. The banks are not in the real estate business themselves and would rather the owners sell the home instead of (the lenders) having to foreclose it.

Here are several reasons that real estate experts feel it?s a better idea to purchase a home during a pre-closure period instead of waiting to buy a foreclosed home at a government auction:

- Pre-foreclosed homes are sold for less than foreclosed homes. A homeowner will sell their pre-foreclosed home for low cost so they won?t have to face foreclosure.

- Since you won?t be at an auction, you will be given more time to talk to the home owner about any questions you may have concerning the house.

- You won?t have to worry about things becoming hectic like they would at a government auction.

- You won?t have to worry about becoming frustrated from losing a bid.

- You will be given more time to access and evaluate your finances before buying a pre-foreclosed home.

- You have more time to have a pre-foreclosed home inspected than you would at an auction. You will be aware of any potential problems the house may have.

- You don’t need all the cash up front like you would at an auction. You can pay a down payment for as low as a few hundred dollars!

Always check to make sure that the pre-foreclosed home you?re interested in has no liens or judgements against it. You should also bring along someone to inspect the home for you so you?ll know of any problems it may have. The risks in purchasing a pre-foreclosed home are similar to purchasing a home the traditional way, only a lot less expensive! You can even resell the pre-foreclosed home for more money than you purchased it for.

It’s unfortunate but foreclosed homes currently represent half of all of all the homes sold in the US. Before the bank forces foreclosure there is in a period called pre-foreclosure which can last anywhere from two to twelve weeks. Many of the real estate gurus have made a fortune on pre-foreclosures and consider it as one of the best, if not the best, way to invest in real estate.

A lot of times the banks don’t want to deal with having to foreclose a home, so they will allow the owners to sell it during the pre-foreclosure period. You can get a great bargain in buying a pre-foreclosed home.

Here are several reasons that real estate experts feel it’s a better to purchase a home during the pre-foreclosure period instead of waiting to buy a foreclosed home at a government auction:

- Pre-foreclosed homes are often sold for less than foreclosed homes. To avoid credit problems a homeowner is motivated to sell their home before the bank takes possesion.

- You will have the opportunity to ask the home owner questions concerning the home.

- Typically less competition then at a foreclosure auction. Foreclosures attracts more of the mass real estate market then pre-foreclosures do.

- The situation allows for more time to evaluate your finances.

- Many people can become more emotionally driven during bidding and pay more then they had intended to.

- You have time to have a pre-foreclosed home inspected resulting is less risk.

- You will be allowed to make a low down payment on a pre-foreclosed house. This is not the case at a foreclosure auction.

Always check to make sure that the pre-foreclosed home you’re interested in has no liens or judgements against it. You should also bring along someone to inspect the home for you so you’ll know of any problems. The risks in purchasing a pre-foreclosed home are similar to purchasing a home the traditional way, only a lot less expensive.

I’m know you’re in tune to the worries of recession and the real estate crisis going on in the US. This has caused a flooding of foreclosures that is surpassing previous highs. Although you still see older foreclosed homes in run down areas, what’s different during this crisis is the quality of forclosed homes and neighborhoods they reside have drastically improved. Even some of the nice estates in wealthy neighborhoods can be found at government auctions for prices much lower than market value.

There are some great values out there but in order to take advantage of them you should first be aware of both the advantages and disadvantages of buying a foreclosed home at a government auction versus the conventional method using a realtor.

Here are some advantages to purchasing a foreclosed or pre-foreclosed home:

- The great prices available on foreclosed/pre-foreclosed homes is obviously the number one advantage.

- Many of the homes are in great condition for what you pay.

- The selection range of home available to choose from is extensive.

- No realtors or agencies fees to pay (consulting with a real estate savvy person is recommended).

- You are not required to pay certain insurances.

- Great investment opportunity (i.e. rent out or flip that house)

- Not as risky as stock investing, plus you will own something of physical worth.

Disadvantages:

- A mortgage could be hard to obtain, unless you have borrowing leverage

- You need to be aware of any existing liens, judgements, or unpaid taxes still on the property.

Making sure that the foreclosed home you’re interested in is clear of all debt is one of the most important things you should do homework on. After that, find out what types of payment plans are allowed, and have any required financing in place beforehand. Obviously any additional savings you may have will help.

Government auctions are being held all around the US and Canada. You can find information about upcoming auctions and pre-foreclosures (homes you can buy before the auction) on the internet along with detailed listings on the homes that will be for sale. Purchasing a home through a government auction can be a very rewarding adventure but doing your research ahead of time will allow you to be prepared. In fact I would recommend attending a few auctions before you are ready to purchase so that you become familiar with that environment.

Everyone is aware of the current real estate crisis and increased foreclosures going on in the States. But what many people may not be aware of, is that there are some great values available if you are looking to purchase a house or property. Whats different now then in the past, is that not only are numbes of foreclosed at all times highs but the quality is much higher as well.

There are some great values out there but in order to take advantage of them you should first be aware of both the advantages and disadvantages of buying a foreclosed home at a government auction versus the conventional method using a realtor.

Here are some advantages to purchasing a foreclosed or pre-foreclosed home:

- The great prices available on foreclosed/pre-foreclosed homes is obviously the number one advantage.

- More often then not the properties are in very good condition relative to price.

- Many more different types of homes to choose from then in the past.

- No Realtors to have to go through or agency fees to pay (although you should still get advice from someone who knows something about real estate).

- You are not required to pay certain insurances.

- Great investment opportunity (i.e. rent out or flip that house)

- Less risky then the stock market, as you own something tangible

Disadvantages:

- A mortgage could be hard to obtain, unless you have borrowing leverage

- You need to be aware of any existing liens, judgements, or unpaid taxes still on the property.

The main caution is to properly check that the property is free and clear of any debt ahead of time. Also know in advance when the government auction expects payment for the house and have the loan details worked out with your bank. As with purchasing any house if you have enough cash handy (who does) that makes your profit potential much greater.

Government auctions are being held all around the US and Canada. You can find information about upcoming auctions and pre-foreclosures (homes you can buy before the auction) on the internet along with detailed listings on the homes that will be for sale. Purchasing a home through a government auction can be a very rewarding adventure but doing your research ahead of time will allow you to be prepared. In fact I would recommend attending a few auctions before you are ready to purchase so that you become familiar with that environment.

“Is it time for a house short sale? Do I need to do that?” Those are the questions that we all ask ourselves. As an investor in single family homes, I have to look at all the options from a business point of view and leave out the emotional attachments. I knew that with the housing downturn, some of my homes were worth much less than I owed on the loans. So I put pen to paper and here’s how I decided what to do.

1) Interview Realtors: Find one that you can trust who either specializes in house short sales, or has done at least 30 of them. An added bonus would be a degree in finance, such as an MBA and a real estate brokers license. The license gives them addition legal responsibility to act in your best interest. It might be wise to consult a CPA and real estate attorney as well, but it will be your realtor that creates and finishes the deal. Please make sure you don’t get swindled by one the companies that asks you to send them the money up front. A legitimate realtor will pay ALL the fees including marketing costs, and get reimbursed when the lender pays the commission.

2) What’s the Home Worth Today? Get a good valuation from your realtor. In reality, when you meet to talk, she should already have the comps ready to hand you. Don’t waste your money on a official appraisal as it won’t be used anyway. This is one situation where you want to be incredibly realistic, even pessimistic about the value, and not succumb to emotional attachment for the house. The more upside down you are in the loan, the greater chance for success in your house short sale.

3) Judgement Time: This is where you determine if you need a house short sale. Take your total loan amount, and subtract the present value of the house. Not what you think it’s worth, but how much you can get for it TODAY. This is how much your “Upside Down” in the loan. Then, figure your annual expenses including a year’s worth of payments, taxes, insurance, maintenance, and repairs. This is your “Yearly Cost” to keep the house. Now, take the amount your upside down and multiply it by 8%. We will assume the best case scenario. In a FAST appreciating market, this is how much your house value would go up each year, if the housing bubble was over today. (yeah right!) We’ll call this number: “Appreciation per Year.” Finally, divide the Upside Down amount, by Appreciation per Year. This is how many years it will take for you just to break even with the amount you owe on your loan. No profit, no realized appreciation. Compare the Number of Years to Break even with Yearly Cost to Keep the House. Can you hold out for that long? Does it still make sense to hold on? Or would letting it go make more sense?

To illustrate: Let’s say you bought a duplex with a $1,000,000 loan. In just one year it has depreciated drastically and will sell for only $800,000. Is it a good idea to seek a short sale?

Upside Down: $900,000 – $700,000 = $200,000 Estimated Annual Costs: Include all your yearly expenses = $60,000 Appreciation: A health growth real estate market = $200,000 x .08 = $16,000

Conclusion: It will take 12.5 years of appreciation at 8% per year, just to regain the depreciation or loss of the original value. It will cost $60,000 a year for 12.5 years just to break even. Most of the accruing interest still won’t have been paid off and full ownership won’t be any closer after 12.5 years of suffering. In 12.5 years, $750,000 will have been paid in mortgage payments and expenses, just get back to the original loan value.

You don’t have to guess what I decided to do. My numbers we’re very similar to these. I know I’ll take a hit on my credit, but for me, 2 -3 years to rebuild my credit is a lot better than 12.5 years of suffering. I’m going to call it quits and live to fight another day.

Most people in the US are aware of the current real estate crisis and the unsettling fact that many people are losing their homes to foreclosure. Before a home is in the process of becoming foreclosed, it is in the pre-foreclosure stage. The pre-foreclosure period can last anywhere from a few weeks to a few months, and is considered by many real estate investors as the absolute best time in which to negotiate the purchase of a home.

Many houses that are ‘for sale by owner’ are houses that are in a period of pre-foreclosure. The lenders sometimes allow the homeowners to try to sell their home before foreclosing it. The banks are not in the real estate business themselves and would rather the owners sell the home instead of (the lenders) having to foreclose it.

Here are several reasons that real estate experts feel it?s a better idea to purchase a home during a pre-closure period instead of waiting to buy a foreclosed home at a government auction:

- Pre-foreclosed houses are often times cheaper considering it?s being sold by a home owner that is in a hurry to sell it before facing foreclosure.

- You will be given good opportunities to ask the home owner questions concerning the home.

- You won?t have to worry about things becoming hectic like they would at a government auction.

- More time to evaluate financial scenario then at an auction.

- Auctions can be either overwhelming or lead to egotistical or emotional decisions.

- Less risk of potential problems because you can get a good look at the house ahead of time, and in some cases have it professionally inspected.

- You don’t need all the cash up front like you would at an auction. You can pay a down payment for as low as a few hundred dollars!

As with any house purchase make sure you check for any judgements, or liens against the estate. Bring along someone how is familiar with buying real estate and if possible have the house professional inspected. The risks are comparable to a traditional type of home purchase but with the advantages of foreclosure discounted pricing.

It’s unfortunate but foreclosed homes currently represent half of all of all the homes sold in the US. Before the bank forces foreclosure there is in a period called pre-foreclosure which can last anywhere from two to twelve weeks. Many of the real estate gurus have made a fortune on pre-foreclosures and consider it as one of the best, if not the best, way to invest in real estate.

Many of the ‘for sale by owner’ signs that you see are from owners that are in pre-foreclosure. The bank usually allows the homeowner time in which to try and sell their home before it is foreclosed. This is common because the bank is not in the real estate business and would prefer the current owner sell the home to cut their losses rather then having to seize the home themselves.

Here are several reasons that real estate experts feel it?s a better idea to purchase a home during a pre-closure period instead of waiting to buy a foreclosed home at a government auction:

- A pre-foreclosed home could actually be cheaper then foreclosure because you are dealing one-on-one with an owner who desperately wants to avoid foreclosure.

- Because you are working with the owner you’ll be able to ask questions about the property you wouldn’t be able to otherwise.

- Typically less competition then at a foreclosure auction where there is multiple bidding for the same property. Foreclosures attracts more of the mass real estate market then pre-foreclosures does.

- More time to evaluate financial scenario then at an auction.

- Auctions can be either overwhelming or lead to egotistical or emotional decisions.

- You have more time to have a pre-foreclosed home inspected than you would at an auction. You will be aware of any potential problems the house may have.

- You will be allowed to make a low down payment on a pre-foreclosed house. At a government auction you would be required to pay the total amount in cash.

Make sure you bring along an inspector when you check out a pre-foreclosed home. You should also check to make sure there are no past judgement liens or unpaid taxes on the property. The risks in buying a pre-foreclosed home are about the same as buying a home the traditional way through a real estate company, but there are a lot more advantages! You can even buy a pre-foreclosed home and then resell it for twice as much!