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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: If a foreclosure sale deficiency occurs. Posted by Ward-CA- on January 11, 2002 at 6:31 PM In Reply to: Re: buying posted by D Taylor on January 11, 2002 at 4:48 PM : If the second mortgage lender then sells the house for less than amount owed on both mortgages, can they come back to us for difference in payoffs and selling price? =•=•=•=•=•=•=•=•=•=•= If the foreclosure sale and final disposition of your defaulted property did not generate enough money to pay off your lender in full then, in some states (see link below), the lender can sue you for their deficiency. It would require the lender to go through more expense and time, so a lot of lenders don’t bother to pursue their rights to a deficiency judgment. However if a deficiency did occur and your lender did decide to spend the extra time and money to get a deficiency judgment then they’d still have to force you to pay the judgment. To do that they would probably haul you into court to conduct a debtor exam of you, under oath. The questions they would ask would be designed to uncover your assets, such as your bank accounts, stock accounts, other personal and real property owned by you, your source of income, etc. The first thing they’d probably try to grab are your various accounts and they’d try to do a wage garnishment against you too. Failing that, they then would go after the tougher tasks of grabbing your personal property and then finally your real property. Your personal residence would be the toughest property for them to grab to satisfy their judgment because of every state's homestead law that protects your home from being sold to satisfy creditor judgments. So I guess what I’m leading up to is that it’s rather remote that you would risk losing your personal residence for a foreclosure deficiency you owe a lender concerning some other property you once owned. Hope this helps. 50 State Foreclosure Basics Follow Ups: Re: If a foreclosure sale deficiency occurs. D Taylor 6:25 AM, 01/12/02 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : If the second mortgage lender then sells the house for less than amount owed on both mortgages, can they come back to us for difference in payoffs and selling price? : =•=•=•=•=•=•=•=•=•=•= : If the foreclosure sale and final disposition of your defaulted property did not generate enough money to pay off your lender in full then, in some states (see link below), the lender can sue you for their deficiency. : It would require the lender to go through more expense and time, so a lot of lenders don’t bother to pursue their rights to a deficiency judgment. : However if a deficiency did occur and your lender did decide to spend the extra time and money to get a deficiency judgment then they’d still have to force you to pay the judgment. To do that they would probably haul you into court to conduct a debtor exam of you, under oath. The questions they would ask would be designed to uncover your assets, such as your bank accounts, stock accounts, other personal and real property owned by you, your source of income, etc. : The first thing they’d probably try to grab are your various accounts and they’d try to do a wage garnishment against you too. Failing that, they then would go after the tougher tasks of grabbing your personal property and then finally your real property. : Your personal residence would be the toughest property for them to grab to satisfy their judgment because of every state's homestead law that protects your home from being sold to satisfy creditor judgments. : So I guess what I’m leading up to is that it’s rather remote that you would risk losing your personal residence for a foreclosure deficiency you owe a lender concerning some other property you once owned. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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