In some cases the lender will pursue a deficiency judgment against borrowers and attempt to collect the amount that was short after the home has sold. This does require a separate action to be filed in court causing the mortgage company to incur further expense. The mortgage company is also acutely aware of the borrower’s inability to pay.
While a deficiency judgment is the right of the mortgagor in the State of Nevada, lenders are sometime willing to waive the right to deficiency judgment in their approval letter or through the HAFA program. We advise that you speak with an attorney and CPA for more information on potential consequences.
Important Notice: Renown Real Estate Services is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.Renown Real Estate Services and licensee Richard Beach are not engaged in the practice of law, legal advice, or tax advice. Renown Real Estate Services and licensee Richard Beach do not attest to the accuracy of this information and assume no responsibility for the actions of the recipients. The pre-ceeding is for informational purposes only and the recipient is urged to seek professional legal and tax counsel.
