Attorneys tell me that the term “deficiency judgement” only applies to a foreclosed property. We so often hear it applied to Short Sales. As you know most Oregon residential loans (first mortages especially) usually do not have deficiencty judgements when they are “foreclosed”.

Sellers need to run everything by their attorney to be on the safe side. Sadly, when they are in a Short Sale situation, spending money on an attorney is often something they do not want to do. So without practicing law we need to give them the best information avaliable.

It is impossible for us to know it all, and especially for clients that have refinances and secondary loans, they should seek a lawyer’s advice.

So, when HAFA refers to “deficiency judgements” I get concerned that it may be a loophole for creditors (especially seconds and refi’s) for them to go after the borrower within their six year time limit.

So if you have researched this out further I would really like to know. Thanks for the great article.