Burlingame Realtor Mary Ann Teixeira Says Foreclosing Homeowners Ask About Deficiency Judgements and How they Work

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Mary Ann Teixeira says as home foreclosures are beginning to become more commonplace, many homeowners ask about the likelihood of a deficiency judgement after the completion of a short sale or a foreclosure upon their property. How deficiencies are handled and whether allowed differs from state to state.

burlingame foreclosures

Many homeowners ask about the likelihood of a deficiency judgement after the completion of a short sale or a foreclosure upon their property.

I hear a lot of fear from homeowners, as they examine choices, they fear that the house may sell but that the debt will live on.

By definition, a "deficiency judgments" is a court decision against former homeowners when the sale of the house does not sell for enough money to cover the amount owed to the lender. In essence the lender can still hold the seller financial responsible after the close of the sale in attempt to satisfy the remaining balance on a loan. However, in California, all first mortgages on a property of 1 to 4 units are protected from deficiency judgements by Senate Bill 931, (SB931) and Civil Code Procedure 580 (e).

Mary Ann Teixeira says “I hear a lot of fear from homeowners, as they examine choices, they fear that the house may sell but that the debt will live on.”

In many situations where the homeowners are in a short sale or foreclosure the idea of a debt living past the transaction is haunting. Homeowners in danger of this situation need to consult with a professional to find out exactly how this may affect them in the future.

For additional information about the conforming or jumbo loan impacts on your home buying, reasons to use a Bay Area real estate agent or San Francisco Bay Area Peninsula real estate and relocation, call Mary Ann Teixeira at (650) 241-0318, or visit her website at http://www.maryannt.com.

About Mary Ann Teixeira
Mary Ann Teixeira is a licensed REALTOR with McGuire Real Estate in Burlingame, California who specializes in relocation services, homes for sale and luxury homes. She is a seasoned buyer’s agent who serves the San Francisco Bay Area Peninsula communities of Atherton, Burlingame, Cupertino, Hillsborough, Los Altos, Los Altos Hills, Los Gatos, Menlo Park, Mountain View, Palo Alto, Portola Valley, Redwood City, San Carlos, San Jose, San Mateo, Santa Clara and Woodside.

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