InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Foreclosure Codes 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 60+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Redemption & Deficiency Posted by Travis-CA on May 29, 2003 at 2:08 PM In Reply to: Redemption & Deficiency posted by zachary on May 29, 2003 at 1:21 PM : Ward, : Just for clarification! : In the "50 state resource data" section of the this site. : it states that there is no redemption period and : Deficiencies are prohibited. : I know that the redemption period is in regards to a period of time after the trustee sale. : Question: : is the Deficiency regarding the discounted amount on a short sale? meaning if I short sale a property in a state that allows deficiencies then the lender has the right to go after the original seller for the deficiency amount? : If so then that is not possible in CA right? : I guess the lender probably still has to 1099 the seller for the deficiency amount, right? : thanks, : Zachary In California the trustor (owner) does not have the right of redemption in a non-judicial foreclosure, nor does the beneficiary (lender) have the right to obtain a deficiency judgment against the trustor under these circumstances. However the trustor does have a 1 year right of redemption if the property is judicially foreclosed upon, and the beneficiary may obtain a deficiency judgment in a judicial foreclosure. If the beneficiary foresees that the property being foreclosed upon is worth significantly less than they expect to receive from the auction proceeds, the beneficiary may at their choice, elect to judicially foreclose on the property, and pursue a deficiency judgment. If they pursue a deficiency judgment the fair market value of the property is determined by an appraisal at the time of the auction sale, not by the auction sale price, unless no appraisal was done, then the FMV is determined by sale price. Travis Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : Just for clarification! : : In the "50 state resource data" section of the this site. : : it states that there is no redemption period and : : Deficiencies are prohibited. : : I know that the redemption period is in regards to a period of time after the trustee sale. : : Question: : : is the Deficiency regarding the discounted amount on a short sale? meaning if I short sale a property in a state that allows deficiencies then the lender has the right to go after the original seller for the deficiency amount? : : If so then that is not possible in CA right? : : I guess the lender probably still has to 1099 the seller for the deficiency amount, right? : : thanks, : : Zachary : In California the trustor (owner) does not have the right of redemption in a non-judicial foreclosure, nor does the beneficiary (lender) have the right to obtain a deficiency judgment against the trustor under these circumstances. However the trustor does have a 1 year right of redemption if the property is judicially foreclosed upon, and the beneficiary may obtain a deficiency judgment in a judicial foreclosure. If the beneficiary foresees that the property being foreclosed upon is worth significantly less than they expect to receive from the auction proceeds, the beneficiary may at their choice, elect to judicially foreclose on the property, and pursue a deficiency judgment. If they pursue a deficiency judgment the fair market value of the property is determined by an appraisal at the time of the auction sale, not by the auction sale price, unless no appraisal was done, then the FMV is determined by sale price. : : Travis Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction.

Copyright © 1997-2003, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455