Foreclosure in 97006>Question Details

Hvbnh, Home Owner in 97006

If the bank forecloses my home, do I have to pay for the deficiency?

Asked by Hvbnh, 97006 Sat May 12, 2012

Help the community by answering this question:


In general, the holder of a first mortgage who forecloses can't seek a deficiency judgment in most cases. Second lien holders can be awarded deficiency judgments, unless the second was taken down at the exact same time as the first.

But each borrower's case is different, and you really need to get a lawyer's advice. If your first lien is a takeout lien and not a purchase money lien, a deficiency judgment might be possible. Only an attorney can tell you for sure, because your circumstances are unique to you.

If you decide to try a short sale, you need to know that the laws on deficiency judgments are part of the foreclosure statutes and don't apply to short sales. In other words, if you short sell your property, the lender absolutely can get a deficiency judgment unless it agrees not to in the wording of the short sale agreement. Again, be sure to get an attorney's advice.

And best to you.
1 vote Thank Flag Link Sat May 12, 2012
It will depend on how they foreclose. There are judicial and non-judicial processes. If you have a judicial foreclosure - they have the ability to do a deficiency judgement.
0 votes Thank Flag Link Sat May 12, 2012
Hi - the short answer is that there are a whole lot of variables to your question. Would need to know alot more details about your loans and your financial situation to give you an accurate answer. Best advice is to talk to a good attorney or expert in this area. Most banks have details on their websites regarding foreclosures of their loans and what steps and ramifications area. They also usually offer links to some help. I'd start there and see what you can find out.
0 votes Thank Flag Link Sat May 12, 2012
If you live in a recourse state, you may have to pay the deficiency. You should ask an attorney if your state is a rescourse state.

However, you have many options to avoid foreclosure and get off the hook for the deficiency. You can do a short sale, you can apply for HAFA, you might be able to do a loan modification, etc. These options will all keep foreclosure off your credit. In addition, if you do a short sale, and qualify, you may be able to get money for relocation costs. We would be happy to explain the process to you. Please call us directly to discuss your specific situation. Our services are FREE for homeowners.

Eli Givoni, Director
Short Sale Department, LLC

MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes Thank Flag Link Sat May 12, 2012
Consult with an attorney who specializes in real estate before considering foreclosure, see what options you may have; most professionals do offer a free consultation, or if you cannot afford one, contact your Local Legal Aid Society for a prono bono attorney--free; it's possible that a short sale may be a better option......
0 votes Thank Flag Link Sat May 12, 2012
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