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Would an insurance settlement be subject to a deficiency judgment?

Posted on: 13th Dec, 2010 11:31 am
I was recently foreclosed on (after repeated attempts to short sale our home) in MA. About a week before we actually moved out I was hit by a car while I was riding my bicycle. I am now dealing with the insurance company and will undoubtedly receive some sort of compensation.

My question is, would this settlement/compensation be subject to a deficiency judgment if one occurred over the foreclosure?

Thank you for your time in answering this. Also, might you please include in any answers your credentials.
Hi jameser!

Welcome to forums!

You will be liable for paying the deficient balance to the lender after the foreclosure sale is over. You may use the compensation that you receive from the insurance company to pay off the deficient balance.

Feel free to ask if you've further queries.

Sussane
Posted on: 13th Dec, 2010 06:41 pm
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