Posted on: 26th Oct, 2006 01:19 pm
my friend owned a house in georgia which was foreclosed recently. the mortgage was $432,781 and lender appraisal at the time of non-judicial foreclosure valued it to be $296,117, as there were no bidders at the time of sale so the mortgage company acquired property, now the company has sued my friend for a deficiency judgment for the balance amount of the mortgage, he will have to pay the balance? my friend and the mortgage company are both in NJ
If the court gives the judgment in favor of the suit filed by the lender then I think your friend will have to pay the balance amount.
Hi Friendinnj,
Whether or not the deficiency judgment suit will be taken up by the court depends on the lender getting a confirmation of the foreclosure sale by a court. In Georgia it is a requirement that a confirmation and approval of the non-judicial foreclosure sale is granted before any deficiency judgment is given.
Thanks
James
Whether or not the deficiency judgment suit will be taken up by the court depends on the lender getting a confirmation of the foreclosure sale by a court. In Georgia it is a requirement that a confirmation and approval of the non-judicial foreclosure sale is granted before any deficiency judgment is given.
Thanks
James
Hi,
If your friend's lender has not filed or the sale has not been approved as of yet by the court then the lender will not be able to get the deficiency judgment.
If your friend's lender has not filed or the sale has not been approved as of yet by the court then the lender will not be able to get the deficiency judgment.
Hi Guest,
"the company has sued my friend for a deficiency judgment for the balance amount of the mortgage, he will have to pay the balance?"
Your friend and the mortgage company may be in New Jersey but he will have to pay the balance will depends on the mortgage laws in Georgia as the property is located there. Under the laws in Georgia, a non judicial foreclosure cannot be the basis to pursue the borrower for a deficiency.
In order to obtain the deficiency judgment, the lender must have reported the foreclosure sale to the Superior Court of the county in which the property is located, that is, the deficiency judgment is allowed in case of judicial foreclosure only. Therefore, your friend cannot be sued for the deficiency judgment. I think you should approach a lawyer for further course of action.
Thanks,
Caron.
"the company has sued my friend for a deficiency judgment for the balance amount of the mortgage, he will have to pay the balance?"
Your friend and the mortgage company may be in New Jersey but he will have to pay the balance will depends on the mortgage laws in Georgia as the property is located there. Under the laws in Georgia, a non judicial foreclosure cannot be the basis to pursue the borrower for a deficiency.
In order to obtain the deficiency judgment, the lender must have reported the foreclosure sale to the Superior Court of the county in which the property is located, that is, the deficiency judgment is allowed in case of judicial foreclosure only. Therefore, your friend cannot be sued for the deficiency judgment. I think you should approach a lawyer for further course of action.
Thanks,
Caron.
yes the bank is about to foreclosure on my house. i got in to reck with big rig i was on motorcycle when he ran over ,i can't work any more he broke 3 of my back bones,so ican't make the house payments i get 860 amonth my payment 1600 .what could i do?ask for a modification on my loan? is there any state programs out there?by the i'm from fresno county CA.thanku
Other than a loan modification, you can look out for mortgage disability programs available to borrowers coming across similar problems as yours. For this, you need to contact a financial planner or an insurance agent.
Hi Guest,
Instead of loan modification, you can look out for mortgage disability programs available to borrowers coming across similar problems as yours. For this, you need to contact a financial planner or an insurance agent. The planner or the agent will analyze your overall financial situation and liabilities and then help you to choose the right insurance plan to pay down your home loan. But you can avail such policy if you are disabled for about 30, 60 or 90 consecutive days before the insurance policy can cover your financial obligations.
Thanks,
Caron.
Instead of loan modification, you can look out for mortgage disability programs available to borrowers coming across similar problems as yours. For this, you need to contact a financial planner or an insurance agent. The planner or the agent will analyze your overall financial situation and liabilities and then help you to choose the right insurance plan to pay down your home loan. But you can avail such policy if you are disabled for about 30, 60 or 90 consecutive days before the insurance policy can cover your financial obligations.
Thanks,
Caron.