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Get out of debt free? Not so fast

The Wheel Estate Cam: Episode 34

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Editor's note and correction: While there is mention of specific deadlines and expirations for deficiency judgments in this video, please note that state laws do vary widely on deficiency judgments, whether they are permissible, and the timeline in seeking the judgments. Review applicable state laws and federal policies. View a related column published today: "Investor ponders short sale's long-term risks," information about the federal Mortgage Debt Relief Act of 2007, and Internal Revenue Service Publication 4681 for details. Episode 34: Some states allow lenders to seek deficiency judgments to recoup money they did not recover from the homeowner in the event of a distressed sale, with restrictions on the method and timing for seeking such judgments. The federal government's Mortgage Debt Relief Act of 2007 does allow for debt forgiveness through 2012 related to the sale of a principal residence. Also see details in Internal Revenue Service Publication 4681:...