Deficiency Judgment
Investing In Real Estate With Friend Leads To Problems
If you invest in real estate with friends or relatives, plan ahead. Otherwise, you may find yourself deep with problems when money is short or disagreements arise. Q: My friend and I bought a single family house to make some …
Underwater Mortgage May Lead to Strategic Default
Can honor ever exist in a strategic default or foreclosure when you have an underwater mortgage? Q: My wife has a home that we currently live in that she purchased back in 2003. We find ourselves in a place where …
Deed-in-lieu or Foreclosure on Second Home
Deed-in-lieu or Foreclosure on a vacation second home is not a sure thing with a bank. Q: I have applied for a deed-in-lieu of foreclosure on a vacation beach home I own, but can no longer make the payments. I’m …
Stop Paying Your Mortgage And Your Credit Score Will Suffer
If you stop paying on your mortgage or consider a strategic default, your credit score will take a big hit. Q: Let’s say I stop paying my mortgage each month. And let’s say there is some time before the house …
Strategic Default: When To Walk Away From Mortgages
A reader considers a strategic default on her home mortgage loan. Q: I am pushing 73 and my house is underwater. I have a first loan of about $140,000 and a second loan of about $18,000 with a 7.85 percent interest …
Mortgage Lender Can Pursue Homeowners After Foreclosure With Deficiency Judgment
Q: I’m in trouble with my house. I’m heading to foreclosure, unless I can complete short sale quickly. Once we’re done with the property (either due to foreclosure or in a short sale), can the mortgage company require me to …
Can You Be Sued For A Deficiency Judgment After Foreclosure?
Can you be sued for a deficiency judgment after foreclosure? Homeowners can be sued for a deficient judgment after foreclosure. Lenders sue foreclosed homeowners for a deficiency judgment after foreclosure. Underwater homeowners and foreclosed homeowners can still be sued for a deficiency judgment after foreclosure. Homeowners worried about being sued for a deficiency judgment after foreclosure should consult a real estate attorney.
Deficiency Judgment An Option For Underwater Homeowner Facing Foreclosure
Deficiency judgment an option for underwater homeowner facing foreclosure. For a homeowner facing foreclosure, deficiency judgment is an option. Best option for a homeowner underwater but current on payments might be deficiency judgment if the underwater homeowner is facing foreclosure. If the lender forecloses on an underwater homeowner’s home they may obtain a deficiency judgment to cover the cost of the underwater homeowner’s foreclosure.
Foreclosure Of Home After Divorce And the Possibility Of A Deficiency Judgment
As if going through a divorce isn’t bad enough, if your former spouse kept the home but your name was still on the mortgage for the home, you run the risk that if the home goes into foreclosure, your credit history will be ruined, your credit score will tank and the lender may come after you for any amount owed on the debt. When you get divorced, you should make sure that any ties to your prior home are broken. You should make sure if you transfer ownership of your former home to your former spouse that you also have your former spouse obtain a new mortgage on the home. The former spouse should refinance the home and at that time, you can quit claim the ownership of the home to your former spouse. A clean break with a former spouse will avoid lingering issues after the divorce.
Foreclosure or Short Sale: Which Is Better And Can The Lender Get A Deficiency Judgment?
Foreclosure or Short Sale? Which is better for the homeowner and the lender? A homeowner is underwater on her rental property mortgage and wonders if her lender will come after her for the deficiency if she walks away from her rental property mortgage. Lenders are processing so many foreclosures and short sales right now, that it’s not likely a lender will spend the money to come after her for the deficiency. Most lenders would also prefer to have the borrower sell the home in a short sale rather than go through the hassle of a foreclosure. The lender can usually get more money through a short sale than they can by putting the homeowner through a foreclosure.
