foreclosure deficiency judgement

Welcome Smileych.

Considering the Wisconsin foreclosure laws, it is legal to ask for the payment of deficiency. But if the foreclosure papers state that the lender won't collect it, he shouldn't have asked for it. This indeed is illegal.

"now they are intercepting my taxes and my ex-husbands"
You mean they have taken from you the tax based on the deficiency? Please explain so that I can give you the right suggestion.

Thanks.

Hi Smileych.

Welcome to the forum.

It is true that Wisconsin foreclosure law allows the lender to file deficiency judgment. But I agree with helping user that the lender should not claim deficiency judgment if it was written in the foreclosure documents.

Are you saying that you have paid tax on that amount? If so that is ok because if the deficiency amount is exempted, you would have to pay tax on that amount. But now according to the new forgiven debt tax relief act which came in December 2007, people get tax relief on the forgive mortgage debt.

"I had a foreclosure in Wisconsin after my divorce a little over a year ago." So the foreclosure took place over one year ago. So I don't think that you can get the tax relief now.

Thanks.

I am sadly facing foreclosure too, wondering how this all worked oout for you? Our court papers als say" no deficiancy judgement will be obtained against any defendant". Does this mean they wont come after the difference if a short sale or sells for less than loan? We also own a second property is that protected! Thanks. Please HELP

live in WI too!

Hi Lm,

If the court orders state that the deficiency judgment cannot be collected, then the lender will not be able to sue you for it. Your balance debts will be forgiven by the lender and he won't be able to come after your second property to recover the dues.

Thanks