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Short Sale Debt Collection

HomeForeclosure Defense

Short Sale Debt Collection

Have You Received a Collection Letter after a Short Sale?

Unfortunately, a short sale does not relieve you of the debt owed on your home. If you have sold your home in a short sale, you still owe money to the lender, and you will likely receive collection letters from the bank, collection agency or an attorney, Sackrin & Tolchinsky, P.A. can help you.

You realtor or title company may have told you that you are clear of the mortgage debt after the short sale. This is simply not true unless the lender specifically waives the right to a deficiency in the short sale approval letter. Most banks will start collection efforts shortly after the short sale, and the smaller regional banks and credit unions are some of the most aggressive with their collection efforts. However, do not be intimidated by collection tactics. Contact our office to speak with a short sale debt collection attorney free of charge.

Larry Tolchinsky contributes to a Channel 10 news story regarding debt collection and short sales. Watch the video here

You Have Defenses to Short Sale Debt Collection

The amount of money the bank received in the short sale minus what you still owe on the mortgage note is the “deficiency.” The bank will pursue you in an attempt to collect the deficiency. In addition, interest still accrues on the amount outstanding on the mortgage note, usually at 18 percent per year (default rate).

If you received a collection letter after the short sale, there are a number of issues which may prevent collection efforts including:

  • Statue of Limitation defenses pertaining to the debt
  • The collection agency may not have a judgment against you – the agency must hire a lawyer and sue you to get the judgment, which is costly and time consuming for the agency
  • The party pursuing collection may not be able to properly prove the debt’s validity
  • The party collecting may not even own the note either because it did not buy the note or it does not have a proper assignment of the note
  • Sometimes, the original note is lost all-together

The items listed above are a few of the issues related to the ways a debt collection effort can be defended. We examine each case and create a strategy for your individual circumstances.

Get A Free Case Evaluation – Call (954) 458-8655

At Sackrin & Tolchinsky, P.A., we will assess your circumstances and create a legal plan designed to achieve the best result in the most efficient manner possible. Contact our office to speak with a debt collection lawyer at no cost.

Do You Have a Question?

Please fill out the “Talk With An Attorney” form above to ask a question or you can call us at 954-458-8655.  We promise to get back to you promptly.  Ask now.

Larry Tolchinsky In The Press Regarding Deficiency Judgments:


Here is related deficiency judgment information from us that you may find helpful:

Deficiency Judgments