You might be wondering, why would the lender sue me after having taken possession of my house? Well, there is something in the law called Deficiency Judgement.

A deficiency judgement is defined as the amount not covered by the sale of your house in the courts as a result of the foreclosure sale. For example. If you owed $100,000 to the bank, and the bank was only able to recover $80,000 in the foreclosure auction, the lender can pursue a deficiency judgement against you for the amount fo $20,000.

Texas is one of those states that allow the lenders to pursue deficiency judgements against former homeowners. Most of the times, nowadays, the lenders do not pursue them, However, it does not mean that they won't go after you tomorrow. So, the question is : For how long can they sue me to recover that?

In Texas, it is 4 years. It means, that the lender has 4 years to try to recover the $20,000 loss thru the judicial courts for the default debt.

Therefore it is in your best interest to try to mnimize the lenders losses in just in case the lender decides to go after you thru the judicial courts to try to recover the deficiency judgement. The best way to do that is thru a Short Sale process.

Now you have heard a lot about short sales, and the truth is that 2 out of 3 short sales are still foreclosing in the Houston market. So, why bother? Well, the reality is that most REALTORS are not trained to do short sales so they fail to bring a short sale to a successful closing.

The best way to make sure that the short sales is succesful is that you employ a REALTOR who has been especifically trained to do short sales. As of today, the most recognized training nationwide to do short sales is the Certified Distressed Property Expert Designation (CDPE).

You might be wondering now if this specialist is going to take a lot of money and you don't even have the money to pay your mortgage. Now, the good news is that the REALTOR's commisssions will be part of the short sale and will be paid thru the sales proceeds, and most of the times, the sellers will walk away without having to spend a single dime other than preparing the house for sale as usual.

Therefore, do not be embarrased by a foreclosure and call your REALTOR right away because time is of the essence to stop a foreclosure proceeding, but before you sign your listing agreement ask him or her if they have a CDPE designation.

If you have more questions, please do not hesitate to Email me or contact me at 713-589-3234 for more information.

As a By Referral Only®, C.N.E., C.D.P.E, REALTOR®, I am committed to providing such extraordinary service and expertise that you will gladly refer your friends, family and acquaintances. With your help I am able to build strong business relationships one person at a time.