But each borrower's case is different, and you really need to get a lawyer's advice. If your first lien is a takeout lien and not a purchase money lien, a deficiency judgment might be possible. Only an attorney can tell you for sure, because your circumstances are unique to you.
If you decide to try a short sale, you need to know that the laws on deficiency judgments are part of the foreclosure statutes and don't apply to short sales. In other words, if you short sell your property, the lender absolutely can get a deficiency judgment unless it agrees not to in the wording of the short sale agreement. Again, be sure to get an attorney's advice.
And best to you.
However, you have many options to avoid foreclosure and get off the hook for the deficiency. You can do a short sale, you can apply for HAFA, you might be able to do a loan modification, etc. These options will all keep foreclosure off your credit. In addition, if you do a short sale, and qualify, you may be able to get money for relocation costs. We would be happy to explain the process to you. Please call us directly to discuss your specific situation. Our services are FREE for homeowners.
Eli Givoni, Director
Short Sale Department, LLC
MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.