Posted: Wed Jun 25, 2008 6:59 pm Post subject: Always a deficiency judgement
I will be losing my home to foreclosure here in Florida in a few days. I am way behind in my payments and I owe way more than the property is worth. In this state I know that the lender came come after me for a deficiency judgement. My question is does a lender always come after a borrower for a deficiency judgement? I am also the sole provider for
three dependents.
Thank You for any information. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
If your state follows the laws on deficiency then the lender has the right to collect the deficiency from you. But it depends upon the lender as to whether he'll accept a short sale or foreclosure and ask for deficiency if the loan amount isn't covered through the sale price. The lender may as well offer you a new repayment plan so that you can pay off the loan.
There are in fact a number of options to help you avoid paying the deficiency. What you need doing is to contact the lender asap and talk to him about your financial situation. _________________ Procrastination is the enemy of your financial sucess
Adonis is correct. The lender can come after you in the event of foreclosure as the sale price of your property will not pay off the lender. Have you consulted and tried to avoid the foreclosure? If not then you should contact with the lender ASAP and see if he can provide any solutions to avoid the foreclosure. There are so many options through with you can avoid foreclosure. Have a look at http://www.mortgagefit.com/foreclosure/17ways-avoid.html
Hope this helps. Feel free to ask if you have any further questions.
CONTACT YOUR LENDER ASAP!. Be sure you are talking to someone within the loss mitigation department/workout department/foreclosure department. Most lenders DO NOT want to foreclose. Be prepared to give them your hardship (the reason you got behind), have your income and expenses ready to go over with them. They will be able to tell you what workout plan you may qualify for in order to STOP THE FORECLOSURE. Are you able to just re-instate the loan? Find out what option you qualify for. Whomever you speak with at the mortgage company, be sure to tell them that you want to know what you need to do to stop the foreclosure today!
And yes, the lender may be able to accept a short sale from you to stop the foreclosure also. There will be certain steps and documents to achieve this with the lender. Be sure that you make them give you all the instructions and requirements and timeframes that are needed to accomplish this.
Let us know if you have any other questions. Hope you will be contacting your lender NOW. You may visit home-buddies.com and review the free step by step guide on foreclosure.
adonis
