Arizona Homeowners being pursued after short sale and foreclosure

Many homeowners think if they go to foreclosure they “wipe their hands” from their lien and will never hear realestateresidentialfrom their old lender again.  Often, homeowners will avoid a short sale because they think they will have to re-pay part of their mortgage yet think if they go to foreclosure, they are “free and clear.”  Contrary to this belief, in many states the lien holder has 5-6 years to contact the homeowner for deficiency judgment.  With a short sale, a good listing Realtor will ask the bank upfront if the seller will be held liable for a future deficiency payment.  Banks are sending these unpaid liens to credit agencies, so it is not rare, both with short sale and foreclosure, that a creditor will be calling a seller that went to foreclosure.

For more info, visit this article from CNNMoney.com.

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