Deficiency Judgement

hi gordon,

in case of a foreclosure, if you are unable to pay the deficient amount resulting from the sale of the property, then the lender may place lien on your other properties. if you pay off the deficient amount, then he will not place any liens.

in my opinion, you should first check if your request for loan modification is accepted by the lender or not. if not, then you can apply for either a short sale or a deed in lieu. filing bankruptcy should be last option in case if any of the other options are not accepted.

thanks,

jerry

I conclude that if I put my condo that has a loan for 450K into foreclosure, then the state of fl will file a def judgemt agnst me for the amount not covered in the courthouse steps sell. So this is really the last resort.
As for a short sale, I could try for that by listing my property, but if no one offers a price, then what choice do I have??? Back to foreclosure. This is a nightmare circle. Help.

Hi Jan,

As far as a short sale is concerned, you will have to contact your lender and check if he agrees to it or not. In order to apply for a short sale, you will have to write a hardship letter to the lender. If he agrees to it, then he will tell you what steps you need to take in this regard.

Thanks

Hello is anyone familiar with concent of jugdment where I agree to the judgment and in exchange, I agree to pay a sum that both parties agree on. I recently bought a duplex in Florida and I am trying to avoid a deficiency judgment that would be real bad for me.

Hi

I've heard of it. It's a kind of judgment passed by a judge to settle an issue or end a litigation when both the parties agree on a mutual solution to the issue. I think you should contact an attorney as he'd be the best person to help you with this.

It does vary from lender to lender, but keep in mind the lender has 20 years to come after you for the deficiency balance

Help, I am trying to do a short sale on my primary residence in florida.
Lender is wells fargo, they took lender provided PMI it is worth genworth, and I was told citi group bought the loan. What verbage do I need in a contract for them to not come after me for a deficiency? In florida

What are the risks of buying a home and then letting your current primary residence that is under water go into foreclosure or attempt to short sale? Can that newly aquired property have a lien put on it?

Hi,

If there remains a deficiency from the sale of the home, the lender can come after you. He may get a judgment against you and garnigh your wages. He may also place a lien on your other properties. However, lenders do not generally come after you unless the deficiency is huge. Generally, lenders would not force you to sell your new home for the lien. However, it is completely up to your lender if they would place a lien on your new home for the deficiency.

In Florida if you are upside down in a mortgage on property (not home) and walk away from it, can the lender obtain a deficiency judgement against the parties to the loan?

The lender has full rights to recover his dues. If he is unable to recover his dues from the sale, then he will come after the parties of the loan to collect the deficient balance.

We are going through a short sale and right before the closing we found out that chase had charged the loan off to Regency collection agency. the short sale people had chase had not known that the loan had been charged off months ago. Now Regency wants us to come up with the difference (31K) or they are threatening to sue us for all of the second loan (112K). Chase also wants to 1099 us as they don't have the loan anymore so the two of them are trying to have the cake and eat it too. What to do?.

Hi Adonis,

I have successfully completed a short sale on my homestead here in Florida, but still going through the short sale process on my investment property that is currently vacant as well.

This property was approved for short sale last October but buyer fell through right after and had to start over.

FYI, On that occasion, the approval notice stated that they would file a 1099-C with the IRS and made no mention of second lender.

I am now more concerned about the deficiency judgment than anything else and I believe that it may be safer to do a DIL.

Aurora is the first and Gmac is second

Can you please advise.

Thanks in advance

hi gangofthree,

if the second mortgage lender has already charged off the loan, then they cannot claim the dues from you. you'll have to settle the dues with the collection agency. you should contact the collection agency and negotiate for affordable payment plan to pay off the dues.

hi manny,

your query has been replied to in the given page:
http://www.mortgagefit.com/problems/deedinlieu-taxdeficiency.html

take a look at it. hope it helps you.

thanks

I heard you can re-open a bankruptcy, and put tour maortgage on it if your going into foreclosure, so they cant come after you :(