Deficiency Judgments and Short Sales in Georgia
A short sale is a negotiated remedy between a homeowner and his mortgage company whereby the the mortgage company agrees to accept less than what is owed on the mortgage in order to facilitate the sale of the property and avoid the time and expense of a foreclosure sale. What many homeowners don't realize is that they may still be on the hook for the difference between the sales price and what they owed on the mortgage after a short sale.
Under Georgia law, unless the bank waives in writing its right to pursue a deficiency judgment, it has the right to later sue the homeowner for the deficiency amount. Many homeowners have no idea that this can happen until they are served with the lawsuit, often several years down the road.
It's important to keep in mind that a short sale is a negotiation; your lender cannot force you to accept terms that you are not comfortable with. So, if the bank refuses to waive its right to seek a deficiency judgment against you, you don't have to go through with the short sale.
To learn more about short sales, visit http://GeorgiaShortSaleCentral.com.
Under Georgia law, unless the bank waives in writing its right to pursue a deficiency judgment, it has the right to later sue the homeowner for the deficiency amount. Many homeowners have no idea that this can happen until they are served with the lawsuit, often several years down the road.
It's important to keep in mind that a short sale is a negotiation; your lender cannot force you to accept terms that you are not comfortable with. So, if the bank refuses to waive its right to seek a deficiency judgment against you, you don't have to go through with the short sale.
To learn more about short sales, visit http://GeorgiaShortSaleCentral.com.
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