Can the bank sue me after foreclosure?
Most states allow lenders to sue borrowers for deficiencies after foreclosure or, in some cases, in the foreclosure action itself. Some states allow deficiency lawsuits in judicial foreclosures, but not in nonjudicial foreclosures. Your lender most likely won’t sue you if they think they won’t recover anything.
When can a lender obtain a deficiency Judgement?
Deficiency Judgments After Judicial Foreclosures in California. Deficiency judgments are generally allowed after judicial foreclosures in California. But the lender can’t get one if the loan was: used to buy a dwelling that consists of one to four units that’s owner-occupied (called a “purchase money” loan)
How do you get out of a deficiency Judgement?
How Can I Avoid a Deficiency Judgment Following a Short Sale?
- Filing for Bankruptcy to Discharge a Deficiency Judgment.
- Negotiating With the Lender to Waive the Deficiency Judgment.
- Making a Settlement Offer.
- Your Lender May Not Sue You for the Deficiency.
How long does a deficiency judgments last?
States have different statutes of limitation on how long they allow lenders to pursue deficiency judgments, ranging from 30 days to 20 years.
Can you settle a deficiency balance?
Settling a deficiency balance is a straightforward process but may require extensive negotiation. You can settle the debt on your own, but an attorney may save you money by using her experience to negotiate a better deal than you would reach.
Can a bank collect on a deficiency judgment after a foreclosure?
If you have a recourse loan, the bank may still go after your assets if it has not recouped all of its money in a foreclosure. How Do Mortgage Lenders Collect Deficiency Judgments? Once a mortgage lender gets a deficiency judgment against you, it can then collect on that judgment.
Can a lender get a deficiency judgment after a short sale?
Whether your lender can go to court and get a judgment for the deficiency, and then collect it, depends on state law. Below you can find the law on deficiencies in each of the 50 states. Deficiencies play a role in short sales too. In most states, you are on the hook for a deficiency after a short sale.
Can a bank get a deficiency judgment in Michigan?
That’s because, under Michigan law, the foreclosing bank is able to get a deficiency judgment. But, under specific circumstances, you can challenge the amount of the deficiency. (To learn about what to do—and what not to do—in a foreclosure, see Foreclosure Do’s and Don’ts .)
What happens if you owe money on Your House after foreclosure?
If you are facing foreclosure, or have lost your home through foreclosure, you might still owe your mortgage lender money after the sale. This happens if the foreclosure sale price is less than the amount remaining on your mortgage – it’s called a “deficiency.”