Remember that the statute of
limitations in Virginia gives the foreclosing lender five years after default
to pursue the deficiency. With a foreclosure, the deficiency is not waived, so
the borrower has to worry about possible collection activity. On the other
hand, with a short sale, the Borrower has a reasonable chance of negotiating
the waiver of the deficiency. Tucker's Tip cannot stress enough the importance
of negotiating a waiver of deficiency when negotiating a short sale.
Our success rate is over 80%
for having deficiencies waived. Of the deficiencies not waived, there is very
little collection activity. For the few instances the lender attempts to pursue
the deficiency, they will settle for pennies on the dollar. As a result, short
sales are always preferable to a foreclosure, especially if the borrower is
simply walking away from the home and pursuing a strategic foreclosure.
Although the pursuit of
deficiencies is not certain, one thing is true: struggling homeowners need
relief!
Contact me at 434-951-0858 or Tucker@TGBLaw.com
if you have questions. Thank
you for allowing us to send you this email.
William D. Tucker,
III
Charlottesville, VA 434-973-7474 | Lake Monticello (Palmyra, VA) 434-589-3636
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