Posted on: 27th Mar, 2010 09:01 am
Hi
After foreclosure, what is the possibility that my lender could sue me (deficiency judgement) for the gap between current debt and foreclosure sales price of the house?
After foreclosure, what is the possibility that my lender could sue me (deficiency judgement) for the gap between current debt and foreclosure sales price of the house?
It depends on your state's law.
Hi Shiven,
Your lender can come after you for the difference between the sales price and the outstanding balance on the mortgage. However, much depends on your state laws. If you used the property as your principal residence and there are strong anti-deficiency laws in your state, the lender cannot sue you for the deficiency. However, if you have a non-recourse loan, lenders cannot come after you for the deficiency, irrespective of whether or not you live in a anti-deficiency state.
Your lender can come after you for the difference between the sales price and the outstanding balance on the mortgage. However, much depends on your state laws. If you used the property as your principal residence and there are strong anti-deficiency laws in your state, the lender cannot sue you for the deficiency. However, if you have a non-recourse loan, lenders cannot come after you for the deficiency, irrespective of whether or not you live in a anti-deficiency state.
