Confession of Judgment - sounds SCARY!

     Another way that a bank will try to mitigate their loss is using something called a "Confession of Judgement".  Sounds scary, doesn't it?  Basically this is an agreement that they are asking you to sign that allows them to enter a judgment against you after the closing of the short sale.  These are controversial because many view them as a violation of due process by courts because by agreeing to it is essentially contracting away your right to raise any defenses.

    We RARELY have these come about and when we have, the banks draw a hard line that they will only agree to the short sale if you sign the confession of judgment.  In those cases, the seller has signed and closed on the short sale.  We have not yet heard of the bank actually going through with the judgment.  

     In my opinion, it is another scare tactic by the bank.  Keep in mind, they are trying to do EVERYTHING possible to get you to get current on your mortgage.  

     For any questions about your best options or to learn more about the process of short selling your home feel free to contact us or visit our website at any time. Have a great day!