The successful note businesses learn how to WORK a note; identify unrecognized value; deal with near bankrupt borrowers, foreclosure, default, attorneys, services, governmental regulations, collateral deficiencies, capital demands, and negative “surprises”.  

Deficiency judgement obligations can be written into the mortgage note or deed of trust but is dependent on applicable state law. 

I had a conversation over lunch yesterday with a private lender here in CHS that is about to take back a local failed flip where the borrower's entire stake will be wiped out, and there will still be a deficiency owed to the lender. 

You can find ones below 18%, but they are inevitably deficient in some way.The other STE manager is a co-host.  

dont have good enough credit.. took guru class's on how to buy with the wrap method.. your relative would be absolutely nuts to sell without getting released from the liability of the current loan.. especially in Texas where they can get deficiency judgements even on owner occ loans.

Texas is a community property - Primary Security Instruments: Deed of Trust, Mortgage- Timeline: Typically 60 days- Right of Redemption: No- Deficiency Judgments Allowed: YesIn Texas, lenders may foreclose on deeds of trusts or mortgages in default using either a judicialor non-judicial foreclosure process.Non-Judicial ForeclosureThe non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust.

Different states and counties have different rules and they may just require that the Estate be provided notice of foreclosure and any remaining proceeds from the sale of the property after the creditors have been paid would go to the Estate, as well as potentially any deficiencies.

Once we receive the report, we can submit a list of Qualifying Deficiencies.

Often buyers are seeking owner carry options because one of these qualifiers is deficient - or they are seeking better financing terms.

These are non owner occ loans the collection methods on these are quite a bit different than owner occ loans.. in many states primarily West Coast  CA OR WA NV AZ etc there is no deficiency judgement allowed by law on a purchase money loan for a primary residence ..