Deficiency judgment Question

[Brighterdays]

How often do deficiency judgment happen? I live in ohio and I am not able to sell my house. What is the likely hood the mortgage holder will file a deficiency judgment? Am I better off to try to negotiate with them to sign off and send them the keys. Also if I have PMI insurance, will that effect the amount of loss I am responsible for?

And will ch 7 erase it?

[justbroke]

Seems like most lenders are just issuing 1099-A/C "forgiveness of debt" forms. However, some (like HELOC lenders) write it off then sell it to JDBs. The JDBs would have a very difficult time getting a deficiency claim won, so they just keep pestering you and seek judgments.

A bankruptcy will wipe out your responsibility to pay any deficiency from the loan, so Chapter 7 would cure this.

PMI insurance can help the lender significantly, so that could drop the value of the deficiency!

I believe you're talking about cash for keys, and you would need an agreement that they don't file for deficiency. If you have PMI, this may even make more sense for the lender.

[Brighterdays]

Seems like most lenders are just issuing 1099-A/C "forgiveness of debt" forms. However, some (like HELOC lenders) write it off then sell it to JDBs. The JDBs would have a very difficult time getting a deficiency claim won, so they just keep pestering you and seek judgments.

A bankruptcy will wipe out your responsibility to pay any deficiency from the loan, so Chapter 7 would cure this.

PMI insurance can help the lender significantly, so that could drop the value of the deficiency!

I believe you're talking about cash for keys, and you would need an agreement that they don't file for deficiency. If you have PMI, this may even make more sense for the lender.

Hey thanks for the response. My issue is I won't be able to file for at least a year. I don't want them coming back on me and taking money i need to live on out of my bank account. I have already moved out, but I would like to just negotiate with them to forgo any deficiency lawsuits. I do have pmi. I just want out of the house and it to be over.

Do you think they might sign off of all future legal actions If I just agree to turn over the keys and sign off the house?

Oh, after thought, if i do a short sale will that prevent a deficiency?

[justbroke]

I have already moved out, but I would like to just negotiate with them to forgo any deficiency lawsuits. I do have pmi. I just want out of the house and it to be over.

If you already moved out, you won't be able to do "cash for keys". The "cash for keys" deal is to get you to move out.

Do you think they might sign off of all future legal actions If I just agree to turn over the keys and sign off the house?

No. Even in a "cash for keys" deal, the lender still forecloses upon the property. Foreclosure (or execution of a power for sale clause) is the only way for the lender to gain title or to sell the property! The only other things is a sale (short or otherwise), to get you off the title.

[Brighterdays]

If you already moved out, you won't be able to do "cash for keys". The "cash for keys" deal is to get you to move out.

No. Even in a "cash for keys" deal, the lender still forecloses upon the property. Foreclosure (or execution of a power for sale clause) is the only way for the lender to gain title or to sell the property! The only other things is a sale (short or otherwise), to get you off the title.

They don't know I moved. I have been clearing stuff out for the last month. I am not interested in them giving me cash, I just don't want to owe them a boat load of money in the future, when i find employment. I am only 2 months down as of now, I figure now is the best time to start negotiating. Toledo ohio was rated the worst place to get a job by forbes, so no use of me trying to prove them wrong. So I am out of there.

[DeadManCrawling]

Its too bad you moved. Are you already paying on another place?

The old one was rent-free until they decided to do something. And legal.

In my state, foreclosure takes an average of over 200 days, which is great for people to save money. Since we are responsible for the place till the lender takes over, why not use it to our advantange?

[Brighterdays]

Its too bad you moved. Are you already paying on another place?

The old one was rent-free until they decided to do something. And legal.

In my state, foreclosure takes an average of over 200 days, which is great for people to save money. Since we are responsible for the place till the lender takes over, why not use it to our advantange?

Normally I would agree with the rent free thing. but in this case it is actually saving me money to get the heck out of dodge. Toledo ohio sucks!! we were ranked the worst medium size city to get a job by forbes magazine, yes out of 365 med cities we came in 365th. Crime is out of countral because we just 25% of our police force cause Toledo is broke(28mill in the hole). They now are talking about raising every tax possible. The new Motto of Toledo is "THE LAST ONE OUT, PLEASE TURN OFF THE LIGHTS"
So Hopefully you see my dilema. I am living rent free in another city in ohio until I find employment(thanks mom ) Any who. I have been reading about deficiency judgements and am trying to figure out how to avoid the mortgage holder getting into my checking account and claiming my money as I can't file Bk for about 1 year.

Questions:

1.) has anybody successfully negotiated a keys for cash with their mortgage company?
2.) has anybody gotten their money (in bank account) taken by a mortgage holder?