Deficiency Judgments: A Fairfax VA Short Sale Lender's Point of View

Fairfax VA – This is a continuation of a concept about how the bank’s regard Fairfax short sales. Are you attempting to prevent a deficiency judgment? If so, then you need to be mindful about how you stage yourself to your lender.

A loan company will commonly be ok with allowing a destitute borrower get away without a deficiency judgment. But, if they think you have plenty of money available, they are going to want some of it. They feel that since they are losing thousands of dollars, then you should give them back the money.

(Luckily you don’t need to fret about a deficiency if you are either of the following individuals. Category A: You are genuinely destitute, or just barely scraping by. Category B: Your loan provider is FHA, VA, Fannie Mae, or Freddie Mac. They commonly permit borrowers to walk away without a deficiency.)

If you fit into Category A, then make certain everything you deliver to the lender cites that you do not have extra cash. Your hardship letter should specify that you only have enough money for basic living necessities.

Your financial statement should display that your monthly payments are higher than your monthly earnings. For example, you might show a monthly income of $4,000. You will want to detail all your expenses and make sure it totals $4,000 (or more).

Add in every single cost you can account for. Entertainment, cable TV, childcare, medical bills, life insurance, credit cards, automobile upkeep, groceries, electric, water, all utilities, phone, cell phone, etc. The list could go on and on. The idea is this, make positive you add in everything possible.

This will show the loan company that you don’t have the excess money. You simply can’t manage to pay them $300, $400, or $1,000 a month. The bank will see that. They will be more likely to accept the short sale and let you walk away owing nothing. I’ve got a lot more information on Fairfax short sale deficiencies. If you have any questions about short sale deficiencies, please e-mail me at Thierry@ThierryRoche.com. 

Are you serious in marketing your home as a Fairfax short sale? Call me at (703) 322-0600 for a free consultation. When you call, I will discuss how the Fairfax short sale process works in detail and answer any questions you may have. Discover how others with Fairfax VA homes for sale successfully completed a short sale and request your free home evaluation from Fairfax Realtor Thierry Roche. 

Considering a Fairfax loan modification? Our Fairfax loan modification kit has the instructions you will need to get a loan modification approved with your lender.

Thank you for reading this, Thierry Roche.

Thierry is a Real Estate Agent at RE/MAX Premier, and Host of Talk Radio’s, “Inside Real Estate.”

Phone: (703) 322-0600.

Thierry@ThierryRoche.com 

Thierry Roche specializes in loan modifications and short sales in Fairfax Virginia. Fairfax Loan Modification Help. Fairfax Short Sales. Fairfax Short Sale Realtor. Fairfax County Short Sale Realtor. Fairfax VA Short Sales.

Copyright 2010 Inside Real Estate, LLC. All Rights Reserved.

Leave a Reply

Your email address will not be published.