As the web of short sales and foreclosures continues to unfold, a new twist has come into play. Investors have begun purchasing deficiency judgments (“an unsecured money judgment against a borrower whose mortgage foreclosure sale did not produce sufficient funds to pay the underlying promissory note, or loan, in full” Wickipedia) from banks for around 2 cents on the dollar, according to a recent Wall Street Journal article House is Gone but Debt Lives On.
Silverleaf Advisors LLC, a Miami private-equity firm, is one investor in battered mortgage debt. “We are waiting for the economy to somewhat heal so that it’s a better time to go after people,” says Douglas Hannah, managing director of Silverleaf.
As with all complex business and financial matters, a specialist’s advice is invaluable before signing any documents. We recommend speaking with an attorney and an accountant to better understand all possible consequences before making any decisions.