Deficiency – A deficiency in real estate is rather simple and it deals directly with the short sale process. A deficiency is defined by webster as an amount that is lacking or inadequate. This applies to a short sale with the difference between the amount borrowed and the amount written off as paid after a short sale. This is the amount the borrower is deficient. Now in some states the borrower can be pursued for this deficiency while in other states there are Anti- Deficiency Laws. More about this in later posts. Now the deficiency is one of the many reasons a short sale is considered. In a short sale the deficiency can be determined with careful planning and communication with your realtor about the sales price. Where as in a foreclosure the deficiency is only determined by the highest bidder at a foreclosure auction (where the price is usually significantly lower than in a short sale).
- Jeff Buettner
Real Estate Wiz Kid
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