Angel Lynn™ - My Sacramento Real Estate Agent, Foreclosure & Short Sale Specialist » Purchase after Short Sale

Dealing with Deficiency Judgment in Foreclosure during a Divorce

Angel — Thu, 18 Mar 2010 21:34:33 +0000

The debt will most likely be considered as a marital debt if the house is a marital asset. A deficiency judgment is a marital debt if it develops from the short sale of a marital residence before going to a divorce. Only one party will going to own the house as soon as the divorce papers is signed and approved. However, when the house was under a short sale or foreclosure, the person who will be responsible to pay off the deficiency judgment will be the one who has the title to the home.

Deficiency judgment is refers to the difference between the amount that the house was sold for and what you owe the bank. What happens next is that the bank will do nothing on your remaining debt. However, five years later, they will go to court and obtain a judgment to your remaining debt. After they have a judgment, they have 20 years to collect on the judgment. You can’t run from any of these since they have both your social security numbers from the days when you were married and owned the house with your spouse. Therefore, collecting on the judgment would be easy for them. If you are unable to pay your debts on time, they can garnish your wages and confiscate some of your personal property to fill in your debts. As long as you were on the title and deed to the property at the time it went foreclosure and the judgment of divorce does not clear you from the responsibility for the debt. To prevent this dilemma from happening, you should negotiate with your lender at the time of the short sale.

Free Short Sale Class Wednesday Nights at 6PM for the month of March

Angel — Sat, 20 Feb 2010 04:59:45 +0000

Short Sales Sacramento

Get all your questions answered. Starting the month of March, Angel Lynn will be hosting homeowner awareness classes in Sacramento. Learn about how to avoid Foreclosure, what is Short Sale and how you can modify your loan. Classes will be held at 1913 Capitol Ave. Suite C, Sacramento. Come get your questions answered about what is going on in the market. What to expect and how to protect your family. Please call our office to reserve your seat. 916 443-1445.

http://hosted.cdpe.com/23409/

Wednesday Nights 6pm

1913 Capitol Avenue, Suite C

Sacramento, CA 95811

Can I buy another home if I Short Sale?

Angel — Sun, 26 Jul 2009 07:13:00 +0000

Short Sale
Some agents say the good news for short sale sellers is the wait is much shorter before buying another home, and Fannie Mae guidelines in 2008 adopted new procedures.
Can a seller buy again in less than two years? Not really, says Coy, “It’s an utter myth that a consumer ‘can buy again in about 18 months at a good interest rate.’ However, Fannie Mae guidelines now require only 24 months’ seasoning, and that’s good news for agents who specialize in short sales.”

Note that Fannie Mae guidelines allow a seller to immediately apply for a new loan to buy another home if that seller kept the payments current, had no delinquencies exceeding 30 days and did not agree to repay the debt relief. Moreover, it’s the late payments that affect your credit report, not the short sale.
About.com

I get this question all the time out in the field. With all the guidelines changing so rapidly I won’t be surprised if new programs will be available for buyers affected by a Short Sales. If a seller goes through a foreclosure they are looking at a 5 to 7 years before they can purchase again.
Angel Lynn