Can I Short Sale My Home For Free With No Deficiency Judgments? The availability of a deficiency judgment depends on whether you have a recourse or nonrecourse loan, which is largely a matter of state law. In some jurisdictions, first mortgages are non-recourse loans, but second and subsequent ones are recourse loans.
States that follow the title theory of mortgages typically allow non-judicial foreclosure procedures, which are fast, but do not allow deficiency judgments. States that follow the lien theory of mortgages require judiciary foreclosure procedures, but allow deficiency judgments against the debtor.
If you're considering short selling your home, determining this information up front is critical. We will investigate and determine your loan status and report our findings back to you within 24-72 hours.
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