I had a home foreclose on me, about 3 years ago. I tried doing short sales but the bank would not allow any to go through. I am in a serious

Asked by Lisa Reeves, Grand Rapids, MI Tue Oct 18, 2011

relationship. He is concerned that the bank can come after me for the house that was foreclosed on me. It sold for less money that I had short sales for but it did sale. So beside my credit being bad can the bank come after me for more money?

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Linda Lorenzo’s answer
Linda Lorenzo, Agent, McKinney, TX
Tue Oct 18, 2011
As metioned you definitely need some professional advice. If you can't afford an attorney, go see a lender and see what they think. Another option is a company called Legal Shield that for a low monthly fee ($27) will give you legal help. Email me if you would like me to link you up or send you more information. Good luck.
Web Reference:  http://www.LindaLorenzo.com
0 votes
Don Groff, Agent, Austin, TX
Tue Oct 18, 2011
Every state is different. Texas is a non-recourse state but I am unsure of Michigan. Definitely consult a real estate attorney to get the best most accurate advice.

Best of luck to you,

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
0 votes
Bruce Lynn, Agent, Coppell, TX
Tue Oct 18, 2011
You need to check with your personal attorney.
I think they can come after you for the deficiency, but don't think that often happens in Texas.
It also might depend on if you had assets or not.
0 votes
Sue Riley, Agent, Celina, TX
Tue Oct 18, 2011
Typically when a house is foreclosed upon the bank retains the right to recover the debt. Whether or not they will depends on the bank It is most people's opinion that the banks are never going to be able to recover on all of the foreclosures but in theory they can. I would read any paperwork that you have from the bank and if necessary ask a real estate lawyer to check it for you and ask their advice on if there is anything that you can do to get an agreement with the bank not to recover the money.
0 votes
Rachel Damma…, , Westminster, CO
Tue Oct 18, 2011
Yes the bank can come after you for the deficiency! In Colorado, I believe the bank can come after you up to 7 years after the foreclosure - I'm not sure the time frame in Michigan. Right now it is not common practice (because everyone is broke from the economy) but if things turn around, they surely might do it.

I should also say that it depends on the investor behind your loan. If it was an FHA loan, they might be less likely to come after the deficiency. I do recommend you talk with a lawyer or CPA.

Good Luck!
Web Reference:  http://www.racheldammann.com
0 votes
Melissa Hail…, Agent, Plano, TX
Tue Oct 18, 2011
I have never heard of any creditor coming after anyone for the balance that they wrote off. Once a company accepts the write-off, it should not be on their books as outstanding debt. However, this will show up on your credit report and other businesses will view this as a high credit risk. You will likely find it hard to purchase another home in the near future. You said it had been 3 years ago, however the banks usually don't file the foreclosure immediately....and the credit agencies start the clock when it get's finalized and filed. That means that if someone tells you that you can buy a house ____ years after foreclosure (2 years, 3 years, 5 years, etc) that it will likely be longer than you expected.

A mortgage lender would be your best resource to see if you are able to purchase again. Good luck!

Melissa Hailey
Coldwell Banker Jane Henry Realtors
North Texas Top Team, Realtors
0 votes
Dallas Texas, Agent, Dallas, TN
Tue Oct 18, 2011
You need to confer with an attorney consider legal advice Realtor can't render an opinion

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
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