What Is a Deficiency Balance?
What is a Deficiency Balance?
Deficiency balance lawsuits are an unfortunate part of the aftermath of the real estate boom in the 1990s and early 2000s. During this period of time, banks and other lending agencies were very liberal in their mortgage and loan agreements for new and established homebuyers. In the event that a homeowner is not able to pay back the full amount of his or her mortgage, a deficiency balance suit may be filed on behalf of the bank.
A deficiency balance suit will require the homeowner to pay back the mortgage in full. Rather than go through the hassle of filing a deficiency balance claim, many banks and lending agencies choose to perform short sales. A short sale realtor in Atlanta can help sell a home quickly, and for less than its appraised value. Many real estate companies specialize in this type of real estate transaction. If you need help buying or selling a home, you should be sure to contact a real estate agent in your local area today.