Most Investors have come across the concern among Homeowners and Agents that dealing with an Investor will simply increase the deficiency that the Homeowner may be required to pay.  While it is true that we are not always able to negotiate away all Lender requirements to pay a deficiency, having an Investor as a place holder in the deal will generally speed up the process of getting the Lender to consider a Short Sale and may actually trim months of non-payment off the amount of deficiency that is accumulated.

Skillful, experienced Short Sale negotiators are also often able to either reduce or eliminate the deficiency from the deal and get the Short Sale HUD-1 accepted as “paid in full.”

Just because a home goes to foreclosure does not mean that all of the debt is wiped from the slate.  Often the Homeowner will be stuck with steep court costs and the Lender may win court approval to pursue a deficiency once the house is sold, so the total expense to the Homeowner may be more and much less negotiable than it would have been with a Short Sale. The foreclosure often merely delays the painful result of a deficiency judgment.