Will a Deficiency Judgment After Foreclosure or Short Sale Come Back to Haunt?

Not a day goes by when I don't receive an email or phone call asking me whether a lender will file a deficiency judgment after a foreclosure or short sale.

Some lenders are within their rights to pursue a deficiency judgment, but sometimes the banks sell their uncollected promissory notes to collection agencies which, in turn, use unscrupulous tactics to try to collect the debt. It's difficult for a borrower to figure out if the banks are entitled to the deficiency judgment or if they're just applying strong-arm tactics, hoping the victim, er borrower, will simply ante up.

In California, for example, it's rare that a lender has the right to pursue a deficiency judgment, but junior lien holders may have a claim, depending on the type of loan . . . read more about Deficiency Judgments.

More Articles by Elizabeth Weintraub:

• Stopping Foreclosures
  
• Short Sale and Foreclosure Taxes
  
• How to Do a Loan Modification

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