Posted on: 18th Apr, 2009 09:31 am
My house is being forclosed on in Ocala Fl. in 2005 we bought the house for 250000. It appraised at 256000. I borrowed 237500. PMI was on the house. i lost my job and have had to move out of state and take a job making half of what i was making and to say the least there is no extra money. What are the chances BOA will come after me for deficiency judgement? It has been for sale for 9 months with no activity. We were trying to work out a short sale, but they have moved into forclosure. I'm sure the seeling price will be at least 75000 short of what I owe.
i don't know if anyone else has the answer to this continuing quandary. here's my opinion, for what it's worth.
the extreme likelihood of bank of america or any other lender going after borrowers for a judgment post-sale seems to me to be quite small. in the first place, they weren't able to squeeze foreclosed borrowers for the payments prior to foreclosure, so why is it that they'd expect to gain from seeking a new judgment? second...the lenders are going to be writing off their losses, which they do every year anyway. it'll be far easier and far less expensive to send a 1099 to every borrower with a deficiency (if that's their choice) than it would be to try to collect on all these amounts.
how about this one: they don't want negative publicity, either. going after folk who have lost their homes isn't going to be very beneficial from a public relations standpoint.
the extreme likelihood of bank of america or any other lender going after borrowers for a judgment post-sale seems to me to be quite small. in the first place, they weren't able to squeeze foreclosed borrowers for the payments prior to foreclosure, so why is it that they'd expect to gain from seeking a new judgment? second...the lenders are going to be writing off their losses, which they do every year anyway. it'll be far easier and far less expensive to send a 1099 to every borrower with a deficiency (if that's their choice) than it would be to try to collect on all these amounts.
how about this one: they don't want negative publicity, either. going after folk who have lost their homes isn't going to be very beneficial from a public relations standpoint.
I agree with George on all points especially the publicity angle. All they would need is for a few borrowers to get on the news and tell their story about how BOA came after them and see how many people look elsewhere the next time they need financing.
