Honestly, I'm feeling pretty frustrated right now. Had to sell my house recently because I couldn't keep up with the mortgage payments anymore. Thought a short sale would be the best way out, you know, get rid of the stress and move on. But now I'm hearing from the bank that I might still owe them money because the sale didn't cover everything I owed. Like, seriously? I thought the whole point of selling was to get out from under this mess, not to still be stuck paying for a house I don't even own anymore.
I did some googling (I know, probably should've done more research beforehand, but hindsight is 20/20, right?), and apparently this is called a deficiency judgment or something like that. Basically, even after selling your home at a loss, the lender can still come after you for the difference. Um...how is that fair exactly? I mean, if I had extra money lying around to pay off the difference, I wouldn't have needed to sell in the first place!
I'm just feeling pretty blindsided by this whole thing. My realtor didn't really mention this clearly when we were going through the process—maybe it was buried in paperwork somewhere or maybe they assumed I knew. Either way, it feels kinda shady and unfair.
Has anyone else dealt with this? Did you end up actually having to pay back the difference or did your lender let it slide? I'm hoping there's some wiggle room here because honestly, I'm tapped out financially and emotionally at this point.
Unfortunately, this is pretty common after a short sale. A deficiency judgment is basically the lender's way of trying to recoup their losses when the sale doesn't fully cover your outstanding mortgage balance. Whether or not they pursue it depends on state laws, your lender's policies, and your financial situation. I'd suggest contacting your lender directly to discuss options—sometimes they're open to negotiating a settlement or payment plan that's manageable for you. Hang in there...it's a tough spot, but there might be room to work something out.
"sometimes they're open to negotiating a settlement or payment plan that's manageable for you."
Yeah, totally agree with this. Had a client once who was in a similar jam—after some back-and-forth, the lender actually settled for way less than expected. Never hurts to ask... lenders can surprise you sometimes.
"Never hurts to ask... lenders can surprise you sometimes."
Yeah, this is spot on. When I bought my first house, I had some unexpected costs pop up after closing that really caught me off guard. I was pretty nervous about approaching the lender, but when I finally did, they were surprisingly understanding and flexible. We worked out a payment plan that didn't strain my budget too much, and it was such a relief. Honestly, lenders deal with situations like this more often than you'd think—they'd rather help you find a workable solution than risk not getting paid at all. Hang in there... it might feel overwhelming now, but reaching out could make things way easier down the road.
