Picture
Another common type of loan that does not usually have a deficiency is a USDA loan. The USDA loan program was created to make it easier for people that lived in rural areas to buy their own home.

USDA stipulates that you must be at least 30 days behind on your payments before they will start the short sale process. This is different from most other loan programs. haven't heard of another loan program where they specifically stipulate that you must be behind on the payments before they will consider a short sale.

The good news is that their short sale guidelines state that you won't have a deficiency after completion of a short sale. Here is the text from their short sale guidelines:
 
A borrower who successfully sells the property securing the loan using the Pre-Foreclosure Sale Option is relieved of the mortgage obligation. The borrower shall not be pursued for deficiency judgments by either the Servicer or the Agency.

This is good news for anyone that has an USDA and wants to get out from under their upside down mortgage.




Leave a Reply.

    East Lion Realty & Mortgage

    We're a big-town company that handles realty in all of Southern California. Haven't heard of us? Come to our website to learn more then!

    About the Team

    Here at East Lion Realty & Mortgage, we take care of you and want to learn more about you. In order to do that, you need to learn more about us as individuals. Go here to view our profiles.

    Thinking about a Short Sale?

    Ashish can help you short sale your property and get back on your feet. Send him an e-mail at Ashish@EastLionInc.com. He will contact you for a free consultation and explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call him directly at (818) 259-3455.

    Discover how other sellers successfully completed a short sale and request a free consultation by going to our Facebook page.

    Categories

    All
    Advice
    Curb Appeal
    Finding Agents
    Hardship Letter
    Home Value
    Housewarming
    Load Modification
    Short Sale
    Tiny Homes