Let’s take a closer look at what deficiency judgments are now.

So when you default on a loan and the lender repossesses your property, the value of the property may not pay off the loan.
For example, you might owe $100,000 on your home, but it only sells for $80,000. You’re $20,000 short.

Because the lender wants all of the money back, they may take further legal action against you. Legal action to collect the remaining amount is called a deficiency judgment.

A deficiency then, is the difference between the fair market value of the property and the amount received, providing the amount received is less than the amount owed.

<a href="http://h4hconsulting.com/cms/wp-content/uploads/2011/08/deficiency-judgement2-e1314322698106.jpg"><img class="alignleft size-thumbnail wp-image-1101" title="deficiency judgement Tampa" src="http://h4hconsulting.com/cms/wp-content/uploads/2011/08/deficiency-judgement2-150x150.jpg" alt="" width="150" height="150" /></a>Whether the bank can pursue a deficiency judgment after a foreclosure or short sale depends in part on whether a promissory note makes the seller personally liable for the debt. Some states allow for personal liability.


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Learn more about all of this from Chris and his guest in this video. (http://h4hconsulting.com/cms/video-library/how-will-a-deficiency-judgment-impact-me/)