Worried About being Sued for Deficiency?

[KatInVa]

[techguy74]

I don't see Massachusetts listed. Can anyone provide info on Mass?

[KatInVa]

I'm not sure why Mass is not listed, just looked up Mass foreclosure law.

A deficiency judgment may not be generally obtained when a property in foreclosure is sold at a public sale for less than the loan amount which the underlying mortgage secures unless certain notice requirements are met. An attempt to collect a deficiency will potentially open the door to a redemption action in a judicial foreclosure.

[KatInVa]

I was told not to do a short sale or deed in lieu of foreclosure. It can open the door to a being sued for the deficiency.
There are way to avoid being sued but in most non-recourse states the home must be sold at a sheriff auction to avoid being sued. Hope that makes sense my brain is fuzzy today.

[lrjax05]

How about in Florida? Anyone who got sued for deficiency? What did you do?

[hamletsdead]

California's only non-recourse on purchase money loans. Refinancing is all recourse lending.

[AfraidOfBK]

I was told not to do a short sale or deed in lieu of foreclosure. It can open the door to a being sued for the deficiency.
There are way to avoid being sued but in most non-recourse states the home must be sold at a sheriff auction to avoid being sued. Hope that makes sense my brain is fuzzy today.

I was told that a short sale or died in lieu might be cause for being sued...then my friend foreclosed on her rental property, and just walked away...tried a short sale, it never happened after 7 or 8 months on hte market...well one or two months later she got sued anyway...this is in Las Vegas, NV

[hamletsdead]

California's only non-recourse on purchase money loans. Refinancing is all recourse lending.

Let me revise this: If your loans are purchase money loans, in CA you can never be held personally liable for the deficiency in a foreclosure, whether it is by sheriff's sale or judicial foreclosure (other than a fraud case against you, but that's a different story entirely)

[questionsGA]

Question on being sued - Short Sale

Hi. I'm in a recourse state - GA. I'm about to sign a short-sale offer today. It is a low-ball, but the buyer expects to pay a little more when (if) the bank counteroffers.

It will not be enough to pay and of the HELOC and shorts the 1st lender as well. Most likely the banks will shoot it down.

I'm wondering if I'm better off just letting it foreclose. Will it make any difference at all, as far as a judgment goes, whether we short-sell or let it foreclose in a recourse state?

(I'm not concerned about the credit, just the HELOC.)

Thank you.

[billsbroke]

Cahpter 7 would end the issue of recourse wouldent it? If you are foreclosing anyway your credit is still trashed that would be the best option, without reaffirmation they cant come after you for anything

[questionsGA]

Short-Sale vrs Foreclosure vrs. Chapter 7

Thank you for your reply. Chapter 7 is not an option for us due to the year-look-back period with a few large cash withdrawals. One of us is on SS now and I will be in November, so garnishment is not a problem (unless we don't pay IRS, of course).

So, our options at this time are letting it foreclose or continue with the short-sale. Just want to know if there really is any difference in the end result we will face with the HELOC debt.

Thanks.