In Foreclosure Can Lender Sue For A Deficiency Judgement?
If the property is worth less than the total amount owed on the mortgage loan, could a deficiency judgment could be pursued by the lender.
If the property is worth less than the total amount owed on the mortgage loan, could a deficiency judgment could be pursued by the lender.
Law on this question is different stte to state.
In some of the statutes yes, the lender can come back and sue the borrower for a DEFICIENCY JUDGMENT to collect its losses.
Some of the statutes say it can only be done on a non-residential loan; others say any loan can have suit for DJ filed after foreclosure.
So find and read YOUR state stautes on foreclosure and DJ.
Also… even in states that allow a deficiency judgment, it can depend on if the foreclosure is done as a judicial or non-judicial foreclosure.
Besides an attorney, where can I find out this info?
try this for an anwer
http://www.foreclosurecounseling.com/foreclosure_help/antideficiency.asp
it should be able to help you
[addsig]
Anybody can go to his county law library and find his own state statutes, then find foreclosure laws and read it for himself...no lawyer necessary.
The other thing to consider is you may receive a 1099 for the relief of debt income and need to pay tax on this.