Short Sale Advice – Most short sales will end up in your walking away owing nothing. However, some lenders will not release you. They have firm policies in place and will not change them for any reason. Here is what you can do in this situation.

Discover how other sellers successfully did a short sale and request a free Short Sale Advice by clicking here.

If it comes down to it, short sell your property and accept the deficiency. Then simply don’t pay on it. Inertia and the bank’s disorganization will be on your side. Here is an inside secret.

It is very hard for the lender to collect from you. Sure, they can drag you back into court. But, that takes time and lots of money paid to a lawyer. The fact is, the American Legal System is designed to protect the borrower.

A full time debt collection firm who buys defaulted Home Equity Loans, admitted in the New York Times that it is hard to collect deficiencies. This is according to an article in the New York Times. Clark Terry, the chief executive of Utah Loan Servicing, said the most he will pay for an defaulted home equity loan is $500. Why is that?

Because they are so hard to collect on. “Anything over $15,000 to $20,000 is not collectible,” he said. The article where I found this is “Debts Rise, and Go Unpaid, as Bust Erodes Home Equity, published August 11, 2010 in the New York Times.”

The lenders (and debt buyers) know it will cost them $2,000 going to court to perfect their judgment. After that, most people will simply declare bankruptcy and not pay them a dime. That fact makes the banks very reluctant to pursue you legally. Here is the other thing on your side.

It’s simple inertia. The lenders and debt buyers deal on a volume basis. They know that if they use simple collection techniques, a certain percentage of people will pay. They don’t have time to go thru every single loan and implement every single collection technique.

So they do what they can. Their most effective, low cost collection technique is phone calls. They setup special phone software that allows their collectors to talk to 15-20 people an hour. That gets some people to pay.

These same principles work for all sorts of debts. It will work for defaulted credit cards, defaulted second mortgages, and other people attempting to collect from you. In the next post, I will lay out the process you can use to avoid paying this debt back.

Are you interested in selling your home as a short sale? Call me at (916) 580-6084 for a free consultation. When you call, I will explain how the process works in detail and answer any questions you may have and give free Short Sale Advice.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Roseville loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Mark Peek.

Mark is a real estate agent at Keller Williams Realty offering Short Sale Advice

Phone: (916) 580-6084. mdpeek@gmail.com.

View My homes for sale at www.CallPeek.com.

Mark Peek specializes in loan modification assistance and short sales in Roseville CA. Roseville Loan Modification Help, Roseville Short Sales. Roseville Short Sale Realtor. Roseville Realtors. Roseville Realty. Roseville Realtor. Placer County Short Sales. Placer County Short Sale Realtor. Placer County Short Sales. Short Sale Advice.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Peek’s personal views and do not reflect the views of Keller Williams Realty. This information on Short Sale Advice – How to get out of paying a deficiency Part 1 is provided as a courtesy to our viewers to help them make informed decisions on Short Sale Advice.