Judgement Deficiency

[Faithfullymovin]

Has anyone on this forum or do you know of anyone who had a judgment deficiency issued after there home was foreclosed?

Just curious. I have not come across this on the forum.

Thanks,

[breezyday]

Hi Faith, havne't been here much and I just saw your post.

We are still current with payments since we had a buyer but it fell through.

In 3 months we will leave for sure, we have no choice now.

We talk to a lawyer and found out in our state a bank can not sued for a deficiency, a few states have a no judgments permitted law.
here is what it say,

A deficiency judgment may not be obtained when a property in foreclosure is sold at a public sale for less than the loan amount that the underlying mortgage secures.

What state are you in?

Our bank told me they would sued but the lawyer said he was lying.
Wish we had known this sooner!

[Faithfullymovin]

Breezyday:

Great to hear from you! I am so glad that you do not have to worry about a Judgment Deficiency.

The house is in Michigan and I am pretty sure they can it that state.

What state is your house in?

Hang in there. I will keep you posted on our outcome.

Read some more of my post and you will know where things stand at the moment for us.

Faith

[breezyday]

Oh No I'm so sorry you are stressing!
Life seems so unfair!
I don't even want a bailout we just want to move on!
Sure you feel the same?

We are in WV and was worry because we have a 80/20 loan, but our lawyer said a 80/20 is the same as a 100% since all the money went toward the same mortgage.
Plus both loans are at the same bank.

Wish we had known this months ago instead we went through all our savings >sold so much stuff to hang on hoping the sale would go through.

My husband is going to cash in his 401K so we can get a fresh start.

Remember when everyone was told not to cash them in?
Would had been ahead if we had cash it in last Aug.
Anyway it doesn't matter anymore> no money so the house has to go!

Attorney also told us to give the keys back and tell the bank we can't afford to pay anymore.
he said it may speed things up!
Then Move on!
In a year it will be over!
Since our home has been on the market for over 2 years now, only regret I have is waiting so long.
We hope to stay here until the weather is better March maybe.

[Faithfullymovin]

What kind of Lawyer are you talking with. A real estate attorney or a BK attorney?

I have been told on this forum something different than what you lawyer is saying. I was told yesterday that it doesn't matter if the loan is with the same company that they could treat the 2nd as an unsecured loan and come after us for that.

I hope your right. We will talk with an attorney after the house is sold and see where we stand with any outstanding balance. I just pray that they forgive the balance and I recieve a 1099c but if not, I will do what I have to do. It looks like BK will be the route if they come after us and I will have to work something out with our Landlord. I really think that this is possible. She is very sweet and has been very helpful thus far.

We could not keep paying on the house. So we had to leave. I know we did what we HAD to do.

Thanks for the encouragement.

Please keep in touch.

Faith