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 rew811
Joined: 09 Sep 2009
Posts: 2
2.00 Dollars($)
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 Posted: Wed Sep 09, 2009 3:33 pm Post subject: Can a lender make me pay the balance on forclosed home |
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I live in California and my property went through the foreclosure process in January 2009. I am getting daily phone calls from a collection agency, which i have yet to answer.
My question is, can the lender come after me for the balance. It was my understanding that Bush passed some law in 2008, I believe, so that people wouldn't be responsible for any debt resulting from a foreclosure.
FYI: I purchased my home for $415,000 and it only sold for $105,000
Thank you in advance |
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unclebuck48
Joined: 09 Sep 2009
Posts: 24
8.51 Dollars($)
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| Posted: Wed Sep 09, 2009 4:40 pm Post subject: |
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| Bush did pass a tax forgiveness law, how this works is when the bank sells your home, the deficiency amount (difference between what it sold for and what you owed the bank) is normally considered taxable income, in your case $310,000. You can be forgiven for this tax if it was your primary residence. The bank can sue you for the deficiency of $310K, that is not forgiven unless deficiency judgments are illegal in CA. If it is legal and they sue you for it you may have to file bankruptcy to get rid of it. |
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andrewward001
Joined: 28 Aug 2009
Posts: 51
10.82 Dollars($)
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| Posted: Wed Sep 09, 2009 6:43 pm Post subject: |
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You are answerable for payment of balance amount.
Bank can take necessary steps for it |
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unclebuck48
Joined: 09 Sep 2009
Posts: 24
8.51 Dollars($)
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| Posted: Wed Sep 09, 2009 7:02 pm Post subject: |
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| The bank can sue you for the deficiency of $310K, that is not forgiven unless deficiency judgments are illegal in CA. If it is legal and they sue you for it you may have to file bankruptcy to get rid of it...Seems like an answer to me, they can go after him for the deficiency |
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