Deficiency Judgments

How does one avoid a deficiency judgment? Is my lender going to come after me with a potential deficiency judgment? Is a foreclosure deficiency judgment the same as a short sale deficiency judgment? What effect does bankruptcy have on avoiding deficiency judgments? How do I negotiate with my lender to avoid a deficiency judgment if I decide to short sale my home? Are there attorneys who will negotiate me out of a deficiency judgment if I short sale my home? Do all lenders enforce deficiency judgments? Are Bank of America, Ocwen, EMC mortgage, Chase, Wells fargo, Saxon all enforcing deficiency judgments?

OK, some answers. Yes the banks are seeking deficiency judgments. If you allowed a foreclosure on your property to take place instead of short selling the property, you had no control whatsoever over the matter. This is why we plead with clients to short sale the property and get a good short sale attorney to represent you to avoid the deficiency judgment at the time of the transaction. There are attorneys that work with “good” short sale real estate agents that will do this for you for NOTHING. They actually charge your lender at the closing table on the HUD-1 for their services and YOU PAY NOTHING.

Lets talk a bit about short sale vs foreclosure. First of all when you allow foreclosure it damages your ability to borrow mortgage money much much more than a short sale. The new underwriting rules show clearly that a foreclosure will prevent you from borrowing for 5 years. This will be after the “smart money 2012″ bottom. A short sale will only give you a two year time out, just in time to buy in the 2012 proverbial residential real estate bottom. All speculation of course, but you certainly want options as soon as possible.

The difference between a foreclosure deficiency judgment and a short sale deficiency judgment is control. In a short sale you have the ability to negotiate with the lender, and if you or your short sale attorney or your very good short sale Realtor are diligent and make a good argument at the appropriate time in the negotiation process you can avoid the deficiency judgment by having the lender waive it at closing. They will do this many times just to close out the deal if you bring pressure at the right instant. Timing is critical in making this request. A good short sale attorney or short sale Realtor can make a huge difference in this process. It IS important.

In a foreclosure event you do not have any control whether or not there will be a deficiency that the bank can collect from you. The bank decides without any interference or interaction with you. If they think you have assets or cash flow and just threw the lender under the bus, they will come after you for the deficiency judgment. They will sue you and harass you and try to break you down until you file bankruptcy, commit suicide or deal with them in a payment plan or a sale of some other asset you have to pay them off. Yes, the executives of these large mortgage lenders got silly rich on the tax payers. Watch Michael Moores’ “Capitalism, a Love Affair” and get some serious religion about what is going on in this Country. We are all screwed unless we teach these banks and the greedy jackass’s that run them a lesson with our votes and with the adjudication of the violations they have inflicted upon us by showing the violations to the courts and demanding from the courts the relief the law mandates. This is why we do what we do.. We are here to help homeowners know their options.

Next, what can one do to protect oneself from deficiency judgments of any flavor from a mortgage company? There is something. It is so simple. It is the bully principle. Bullies do not pick on kids with baseball bats. A forensic audit of your sub prime adjustable rate loan is like taking a baseball bat out of the closet before you step outside. You have an extremely high likelihood of finding serious federal violations if you have one of these loans. We have audited hundreds and hundreds of mortgages and find actionable violations of RESPA and TILA in virtually every one. If you do as we suggest and send a copy of the forensic audit to your lender demanding that they cure the defects in your loan, your lender will think long and hard about going after you for a deficiency judgment. Why should they when there are so many others who do not know that they have a defense or a counter claim because they have not had their mortgage audited?

Ok, this is an important question. Are all lenders alike? Does Bank of America enforce deficiency judgments more than Chase, Ocwen, Wachovia, PNC, Saxon or EMC? Are you safe if your short sale was with a local lender? Will you get a better Loan Modification if you have Wachovia rather than Bank of America as a lender?

These are good questions. There are differences in how these banks are reacting to the onslaught of loan modifications and short sales. They each have different policies and methods. We actually had OneWest respond to a QWR demanding that our client pay for making copies of the documents we were requesting. Completely illegal. Recently GMAC refused to respond to part of our clients QWR stating that some of the documents we were requesting were “trade secret” protected. Both were reported to HUD.

The bottom line spirit of this post is to show the power a homeowner gets from a forensic audit. It levels the playing field for you. It allows you to set terms. It forces the bank to deal with you not from a level of complete power, but from a level of respect. If you know that you have busted your bank with a rescissionable violation of RESPA or TILA you are in the drivers seat. You can short sale your house without the looming fear of deficiency judgment harassment. You can send a rescission letter to your lender and force them to consider a principle reduction on your mortgage in your mortgage modification. It doesn’t matter whether you live in Virginia, Maryland, Delaware, North Carolina or Florida These are federal guidelines and your bank will respect you after you uncover their violations.   The transition(alone) from having your lender literally telephone vomiting on you to showing you the respect you deserve is worth the cost of the audit.      Thanks for reading.       Our office number is    540-341-1481

If You want someone to help you negotiate with your bank NOW or you want to find out more about a forensic audit. We are happy to review your loan documents for free.

Lenders who might seek deficiency judgments currently on the implode list:

381. Assurity Financial Services, LLC380. Premium Capital Funding, LLC dba TopDot Mortgage379. First Regional Bank, Century City378. Security Atlantic Mortgage Co.377. Apex Lending, Inc.

376. Charter Bank, Santa Fe375. Equitable Trust Mortgage Corp.374. AmTrust Bank373. Dynamic Capital Mortgage372. Lend America / Lending Key371. New South Federal Savings Bank370. AME Financial Corp.369. Envision Lending Group Inc.368. Warren Bank367. Stockton Turner & Company366. The Lending Company Inc. – Wholesale365. Capmark Financial Group Inc.364. Northeast Mortgage Corp.363. Security Mortgage Corporation362. Windsor Capital Mortgage Corp.361. First Rate Capital Corp.360. StoneWater Mortgage Corp.359. First National Bank of the South – Wholesale358. Senderra Funding – Wholesale357. Capstone Realty Advisors356. Granite Mortgage, Inc.355. Worldwide Financial Resources Inc.354. Guaranty Bank – Warehouse353. Colonial Bank352. Corus Bank351. America One Finance350. Taylor, Bean & Whitaker Mortgage Corp. – Wholesale349. 1st Reverse Financial Services LLC348. HCI Mortgage347. BankersWest Funding Corp.346. American Partners Bank345. Senior Lending Network344. BankUnited, F.S.B.343. Precision Financial, Inc.342. Accredited Home Lenders, Lone Star Funds341. Wells Fargo – Small-Cap Commercial340. Guaranty Bank – GB Mortgage339. American Sterling Bank338. Chase Home Mortgage – Construction Lending337. First Security Loan Corp336. South Pacific Financial Corp. – Wholesale335. Home Loan Consultants, Inc.334. Central States Mortgage333. HSBC – HFC & Beneficial332. JPMorgan Chase – Warehouse331. Ameritime Mortgage Co. LLC

330. Perfect Mortgage – PerfectFHA329. EquiFirst328. Residential Loan Centers of America327. CU National Mortgage326. Colonial National Mortgage – Wholesale325. U.S. Mortgage Corp. – Retail324. First Interstate Financial – Wholesale323. Realty Mortgage Corp.322. Vertice321. USA Home Loans – Wholesale320. SunTrust Mortgage – FHA Wholesale319. First Federal – Wholesale318. 21st Mortgage – Wholesale317. J.B. Nutter & Co. – Wholesale316. Homebridge Mortgage Bankers – Refinance.com315. 1st Republic Mortgage Bankers314. Superior Mortgage Corp – Wholesale313. Wall Street Financial Corp – Wholesale312. Fairfield Financial Mortgage Group311. Chase Prime – Wholesale310. Sunshine & Madison Mortgage Corp309. Liberty One Lending308. Frontier Investment Co.307. Solstice Capital Group – HSBC306. MortgageIT305. HCL Finance Inc. – Wholesale304. LIME Financial Svcs. – Wholesale303. Mortgage Network Inc. – Wholesale302. Fortes Financial – Wholesale301. HSBC Mortgage Corp. – Wholesale300. CBRE Realty Finance299. Franklin Bank, SSB298. Mortgage Lion, Inc. – Wholesale297. HMS Capital, Inc.296. CTX Mortgage Co. – Retail295. Equity One Commercial294. Coldstream Financial Svcs.293. Banco Popular North America – Wholesale292. Ace Mortgage Funding, LLC291. E-Loan290. Gateway Bank, F.S.B. – Wholesale289. First Call Mortgage Co.288. Downey Savings and Loan – Wholesale287. Prospect’s Metrocities Mortgage – Wholesale286. ComCor Mortgage – Wholesale285. Chevy Chase Bank – Wholesale

284. Washington Mutual – Retail and Warehouse283. Hometown Commercial Capital282. Mid Atlantic Capital LLC281. Kemper Mortgage, Inc.280. Liberty Mortgage Funding Co.279. Freddie Mac278. Fannie Mae277. Pacific Community Mortgage, Inc. – Gold Reverse, Inc.276. Homecomings Financial, LLC275. Thornburg Mortgage274. CSB Mortgage273. Carteret Mortgage Corporation272. Western Residential Mortgage271. Liberty Home Lending270. Equipoint Financial Network, Inc.269. Ideal Mortgage Bankers, Ltd. – Wholesale268. Silver State Bank – Wholesale267. Irwin Union Bank & Trust Co. – Wholesale266. SunTrust Bank Equity Wholesale265. Wachovia Mortgage, FSB – Wholesale264. Lehman Brothers SBF263. IndyMac Bancorp262. Mortgages Ltd.261. Wilmington Finance – Wholesale260. Accredited Home Lenders, Home Funds Direct259. Assured Lending Corp. – Wholesale258. Homewide Lending Corporation257. Vanguard Mortgage & Title, Inc.256. Chase Home Equity – Wholesale255. Chase Subprime – Wholesale254. Evergreen Investment & Carnation Banc253. Casa Blanca Mortgage/Shearson – Wholesale252. Guaranty Bank – Correspondent251. Citi Residential Lending250. Montgomery Mortgage Capital Company249. E*Trade Wholesale Lending248. Shearson Financial Network, Inc.247. American Bank Mortgage Group – Wholesale246. AmeriBanc Corp.245. Washington Mutual – Wholesale244. Century Bank, F.S.B. – Wholesale243. Diversified Mortgage, Inc.242. National Wholesale Funding241. Centennial Mortgage and Funding, Inc./Award Mortgage240. Fidelity Home Mortgage Corp.239. LMI Funding, Inc.

238. Millennium Mortgage – Wholesale237. Origen Financial, Inc. (Correspondent)236. CitiMortgage – Home Equity Wholesale235. Bear Stearns Residential Mortgage234. East West Mortgage Co. of VA233. New Vision Residential Lending232. Washington Savings Bank, F.S.B. – Wholesale231. Macquarie Mortgages USA Inc.230. Global Mortgage, Inc.229. Unique Mortgage Solutions (UMS, LLC)228. First Franklin – Merrill Lynch227. First National Mortgage Sources226. Resource Mortgage (Wholesale)225. KH Financial224. Lydian Mortgage223. OMG Wholesale Lending222. Saxon Mortgage (Wholesale)221. Beazer Mortgage Corp.220. Allpointe Mortgage (Broker Program)219. Popular Warehouse Lending218. Allied Lending Corp. (Wholesale)217. BF Saul Wholesale Lending216. Community Resource Mortgage215. Lehman/Aurora Loan Services214. Residential Mortgage Capital213. Maverick Residential Mortgage212. Countrywide Financial Corp.211. First NLC Financial Services210. First American Bank (Wholesale)209. Soma Financial208. National City Corp. (Wholesale)207. Heartland Wholesale Funding206. Homefront Mortgage Inc.205. PNC Bank H.E.204. Family First Mortgage Corp.203. First Fidelity Financial202. BSM Financial201. 1st Choice Mortgage200. Wescom Credit Union199. Coast Financial Holdings/Coast Bank198. WaMu (Subprime)197. First Madison Mortgage196. Southern Star Mortgage195. TransLand Financial194. Secured Bankers Mortgage Company (SBMC)193. ComUnity Lending

192. Delta Financial Corp191. BayRock Mortgage190. Empire Bancorp189. Option One – H&R Block188. Citigroup – FCS Warehouse187. Charter One (Wholesale)186. Wells Fargo – Home Equity185. Paul Financial, LLC184. Webster Bank (Wholesale)183. Fieldstone Mortgage Company182. Tribeca Lending Corp. (Wholesale)181. WAMU Comm. Correspondent180. Marlin Mortgage Company179. Countrywide Specialty Lending178. UBS Home Finance177. MortgageIT-DB (Retail)176. Edgewater Lending Group175. ResMAE Mortgage Corp.174. Citimortgage Correspondent (2nds)173. AMC Lending172. Liberty American Mortgage171. Exchange Financial (Wholesale)170. FirstBank Mortgage169. Bank of America (Wholesale)168. Diablo Funding Group Inc.167. Honor State Bank166. Spectrum Financial Group165. Priority Funding Mortgage Bankers164. BrooksAmerica Mortgage Corp.163. Valley Vista Mortgage162. New State Mortgage Company161. Summit Mortgage Company160. WMC159. Paragon Home Lending158. First Mariner Wholesale157. The Lending Connection156. Foxtons, Inc.155. SCME Mortage Bankers154. Aapex Mortgage (Apex Financial Group)153. Wells Fargo (various Correspondent and Non-prime divisions)152. Nationstar Mortgage151. Decision One (HSBC)150. Impac Lending Group149. Long Beach (WaMu Warehouse/Correspondent)148. Expanded Mortgage Credit Wholesale147. The Mortgage Store Financial

146. C & G Financial145. CFIC Home Mortgage144. All Fund Mortgage143. LownHome Financial142. Sea Breeze Financial Services141. Castle Point Mortgage140. Premium Funding Corp139. Group One Lending138. Allstate Home Loans / Allstate Funding137. Home Loan Specialists (HLS)136. Transnational Finance Wholesale135. CIT Home Lending134. Capital Six Funding133. Mortgage Investors Group (MIG) – Wholesale132. Amstar Mortgage Corp131. Quality Home Loans130. BNC Mortgage (Lehman)129. First National Bank of Arizona128. Chevy Chase Bank Correspondent127. GreenPoint Mortgage – Capital One Wholesale126. NovaStar, Homeview Lending125. Quick Loan Funding124. Calusa Investments123. Mercantile Mortgage122. First Magnus121. First Indiana Wholesale120. GEM Loans / Pacific American Mortgage (PAMCO)119. Kirkwood Financial Corporation118. Lexington Lending117. Express Capital Lending116. Deutsche Bank Correspondent Lending Group (CLG)115. MLSG114. Trump Mortgage113. HomeBanc Mortgage Corporation112. Mylor Financial111. Aegis110. Alternative Financing Corp (AFC) Wholesale109. Winstar Mortgage108. American Home Mortgage / American Brokers Conduit107. Optima Funding106. Equity Funding Group105. Sunset Mortgage104. Nations Home Lending103. Entrust Mortgage102. Alera Financial (Wholesale)101. Flick Mortgage/Mortgage Simple

100. Dollar Mortgage Corporation99. Alliance Bancorp98. Choice Capital Funding97. Premier Mortgage Funding96. Stone Creek Funding95. FlexPoint Funding (Wholesale & Retail)94. Starpointe Mortgage93. Unlimited Loan Resources (ULR)92. Freestand Financial91. Steward Financial90. Bridge Capital Corporation89. Altivus Financial88. ACT Mortgage87. Alliance Mortgage Banking Corp (AMBC)86. Concord Mortgage Wholesale85. Heartwell Mortgage84. Oak Street Mortgage83. The Mortgage Warehouse82. First Street Financial81. Right-Away Mortgage80. Heritage Plaza Mortgage79. Horizon Bank Wholesale Lending Group78. Lancaster Mortgage Bank (LMB)77. Bryco (Wholesale)76. No Red Tape Mortgage75. The Lending Group (TLG)74. Pro 30 Funding73. NetBank Funding, Market Street Mortgage72. Columbia Home Loans, LLC71. Mortgage Tree Lending70. Homeland Capital Group69. Nation One Mortgage68. Dana Capital Group67. Millenium Funding Group66. MILA65. Home Equity of America64. Opteum (Wholesale, Conduit)63. Innovative Mortgage Capital62. Home Capital, Inc.61. Home 123 Mortgage60. Homefield Financial59. First Horizon Subprime, Equity Lending58. Platinum Capital Group (Wholesale)57. First Source Funding Group (FSFG)56. Alterna Mortgage55. Solutions Funding

54. People’s Mortgage53. LowerMyPayment.com52. Zone Funding51. First Consolidated (Subprime Wholesale)50. SouthStar Funding49. Warehouse USA48. H&R Block Mortgage47. Madison Equity Loans46. HSBC Mortgage Services (correspondent div.)45. Sunset Direct Lending44. Kellner Mortgage Investments43. LoanCity42. CoreStar Financial Group41. Ameriquest, ACC Wholesale40. Investaid Corp.39. People’s Choice Financial Corp.38. Master Financial37. Maribella Mortgage36. FMF Capital LLC35. New Century Financial Corp.34. Wachovia Mortgage (Correspondent div.)33. Ameritrust Mortgage Company (Subprime Wholesale)32. Trojan Lending (Wholesale)31. Fremont General Corporation30. DomesticBank (Wholesale Lending Division)29. Ivanhoe Mortgage/Central Pacific Mortgage28. Eagle First Mortgage27. Coastal Capital26. Silver State Mortgage25. ECC Capital/Encore Credit24. Lender’s Direct Capital Corporation (wholesale division)23. Concorde Acceptance22. DeepGreen Financial21. American Freedom Mortgage, Inc.20. Millenium Bankshares (Mortgage Subsidiaries)19. Summit Mortgage18. Mandalay Mortgage17. Rose Mortgage16. EquiBanc15. FundingAmerica14. Popular Financial Holdings13. Clear Choice Financial/Bay Capital12. Origen Wholesale Lending11. SecuredFunding10. Preferred Advantage9. MLN

8. Sovereign Bancorp (Wholesale Ops)7. Harbourton Mortgage Investment Corporation6. OwnIt Mortgage5. Sebring Capital Partners4. Axis Mortgage & Investments3. Meritage Mortgage2. Acoustic Home

Further if your law firm is in the debt consolidation business and you are in any of the jurisdictions below and you have an excellent track record of success, we’d like to talk to you.

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If you are in mortgage trouble of any kind, we can direct you to the right resources and we are glad to help.

Office: 540-341-1481Cell: 703-615-0950Email: info@legalforensicauditors.comWebsite: www.LegalForensicAuditors.com