Will I Get A Deficiency Judgment?
Minnesota / Twin Cities Deficiency Judgment:
NOTE: PLEASE OBTAIN YOUR OWN INDEPENDENT ADVISE FROM EITHER YOUR ATTORNEY OR OUR ACCOUNTANT.
A deficiency judgment is a judgment lien against a debtor, defendant or borrower whose foreclosure sale did not produce sufficient funds to pay the mortgage in full. This option may or may not be available to the lender, depending on whether they have made a recourse or non-recourse loan. Most residential loans in the state of Minnesota are recourse loans.
No deficiency judgment can be obtained against a mortgagor in Minnesota if the redemption period is six months (which it almost always is), and foreclosure was by advertisement (which it also almost always is). If the redemption period is something other than six months, a deficiency judgment could be sought after the debtor, but it is limited to fair market value which must be determined through a Jury Trial.
What does this mean? It means to pursue a short sale if at all possible. You will avoid a foreclosure and most likely avoid a deficiency judgment.
Contact the Twin Cities Short Sale Realtor to discuss your personal situation.
