Foreclosure in 93657>Question Details

Ali, Home Buyer in Saint Paul, MN

I bought a home in Sanger CA about 5 years ago for $350k as a 2nd home. Short sell fail therefore the bank owns it, am i liable for the deficiency

Asked by Ali, Saint Paul, MN Tue Oct 12, 2010

Shortly after the purchase the house was rented out. Because I was struggling financially I missed several payments and began working with a real estate agent and put the house up for sell as a short sell. The agent reduced the price twice. I had a buyer but the buyer backed out and the bank would not give us anymore time to find another buyer therefore it went into foreclosure and now the bank owns it for $175k. Because I never lived in the home I am really concern about everything that is associated with the foreclosure process deficiency. i want to know if the bank will come after me for the deficiency on the first and second loan?

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I have handled Short Sales and Forclosures, I have studied Deficiency Judgements; I consider myself and expert on the subject: But I will tell you that I don't know.

There was supposed to be an Amnesty Period a couple years ago, 2008 I believe, and I remember it was supposed to last two years. I think it was Federally mandated to help homeowners. This would be something for you to research.

Also, I understand that some States have different laws and protections, and it will vary from State to State.
California evidently has the best protections for the Homeowner, but it may not be 100%
And if you LIVE in another State and the house was in California.... Flip a coin.

I also remember something about if the Homeowner was "Destitue"; meaning that they didn't have any obvious assets that the Bank could go after....

It's possible that this could hang over people's heads for years; particularly if they try to buy another house too soon.

We absolutely have not heard the end of this. This could be the thing that will be the next WAVE, after forclosures.

The bottom line; have a serious meeting and invite your Attorney and your Tax man.
0 votes Thank Flag Link Mon Jun 6, 2011
You will be liable - as it was not a primary residence. Whether the mortgage company comes after you for the deficiency is another question.

They may or may not file for a deficiency judgement.

Cross your fingers and hope that the chaos in the market allows it to fall through the cracks.

Good Luck!

If you like the answer - please consider making it a "Best Answer" !

Gerard Dunn
Associate Broker
Licensed in Maryland, Virginia and Washington, D.C.

Assisting Homebuyer's and Seller's for 28 years
0 votes Thank Flag Link Wed Oct 13, 2010
Most likely you will be liable for the deficiency non=recourse only applies to primary residence. Be hopeful some banks do not pursue deficiencies.

Good Luck
Bob Patrick
Buy a home after foreclosure expert
0 votes Thank Flag Link Wed Oct 13, 2010
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