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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Yes there are time limits... Posted by Ward-CA- on October 14, 2003 at 8:48 AM In Reply to: is there a time frame where they can sue me? posted by AH on October 07, 2003 at 12:39 AM : I am losing a rental house to foreclosure. (it was my primary residence, we moved out, rented the house out, big mistake) : I am almost sure that the property won't sell at the sheriffs sale. If it does, it will be for very very little. : Is there a certain time frame that the lender has to act in if they are going to sue me for the remainder of the money owed? Suppose the house sells for $20K, my mortage is for $50K. They sue me for $30K. Or if it doesn't sell at all, they sue me for the full $50K. : I know the house will go up for sell through a realtor if it doesn't sell in the Sheriffs sale. I just don't want the lender to come back on me 6-12 months from now and sue me and force me into bankruptcy. If I'm going to have to do bankruptcy I'd rather just do it now and get it over with. : So, in short (sorry I'm longwinded) is there a period of time which the lender has to act in? I'm in the state of Utah. =================== AH, First of all, the house will sell at the Sheriff's sale. If not to an outside bidder, then to the lender for their opening bid. Yes, there are time limits which the law imposes on a creditor to act to recover their debt. So after the lender's final disposition of the foreclosed property they have about a year to initiate a lawsuit against you for the deficiency. Most lenders never go after the post-sale deficiencies because they perceive it to be a case of trying to get blood out of a turnip. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I am losing a rental house to foreclosure. (it was my primary residence, we moved out, rented the house out, big mistake) : : I am almost sure that the property won't sell at the sheriffs sale. If it does, it will be for very very little. : : Is there a certain time frame that the lender has to act in if they are going to sue me for the remainder of the money owed? Suppose the house sells for $20K, my mortage is for $50K. They sue me for $30K. Or if it doesn't sell at all, they sue me for the full $50K. : : I know the house will go up for sell through a realtor if it doesn't sell in the Sheriffs sale. I just don't want the lender to come back on me 6-12 months from now and sue me and force me into bankruptcy. If I'm going to have to do bankruptcy I'd rather just do it now and get it over with. : : So, in short (sorry I'm longwinded) is there a period of time which the lender has to act in? I'm in the state of Utah. : =================== : AH, : First of all, the house will sell at the Sheriff's sale. If not to an outside bidder, then to the lender for their opening bid. : Yes, there are time limits which the law imposes on a creditor to act to recover their debt. So after the lender's final disposition of the foreclosed property they have about a year to initiate a lawsuit against you for the deficiency. : Most lenders never go after the post-sale deficiencies because they perceive it to be a case of trying to get blood out of a turnip. : 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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