There is a legal word for the cash amount the bank requires if they sell a repossessed home for less that it's worth. I know there's a word for it, but I can't think of it.
Can you help me out? Thanks!|||It's a deficiency balance.
No, this is not a short sale. A short sale is where a lender agrees to take less than the amount owed on the property as payment in full and they forgive the outstanding balance. In a repossession, a lender seizes the property and sells it for what they can get at auction.
They then total up all of the fees they levied and charges they incurred in processing the repossession with the outstanding loan balance, subtract the amount received through the auction, and come up with a deficiency balance. They then put together a repayment schedule for the borrower to repay the deficiency. Or, they sell the debt to a collections agency and they try to work something out with the borrower.|||You are mixed up. A repossessed house is not a short sale. Are you referring to forgiven debt?
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