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rljinvestors · Joined: 11 Jul 2008 Posts: 2 2.49 Dollars($)

I was told that if we had our home foreclosed on that we would not have to pay the deficiency balance. Got a letter just today demanding payment of a "settlement" of $62,000+! We don't have any money and are barely getting by. What are our options at this time?

Niicss · Posted: Sat Jul 12, 2008 12:19 am Post subject:

Welcome rljinvestors.

If you face foreclosure the mortgage company can claim the deficiency judgment. Do you have any written agreement to prove that they will not come after you for the deficiency balance?

You should try to pay it. Otherwise they can place lien on your other properties.

laphillips · Posted: Sat Jul 12, 2008 11:01 am Post subject: Deficiency Balance

Maybe it's the difference used in terminology between states...Is this foreclosure due to a mortgage/home loan? Confused

As Niicss suggests payment will solve the problem BUT that's often more than difficult.

loan modification

HUD provides a list of non-profit housing counselors. Request the list by calling 1-800-569-4287 or on the web at http://www.hud.gov/local/index.cfm

You might also want to read this article "http://www.americanchronicle.com/articles/67875"

Good Luck

Wink

[Link deactivated as per forum rules. Thanks.]

jaden3292002 · Joined: 30 Jun 2008 Posts: 12 7.52 Dollars($)

Who told you that you wouldnt get a difficiency?

Posted: Sun Jul 13, 2008 6:09 am Post subject:

Sorry, there is no free lunch. Check that; unless you're in a "walk away" state like California. Not sure when the American psyche made a 180 to think it's OK to buy something and not pay for it.

There is a "low cost" lunch – bankruptcy -- but it comes with a lot of baggage. On the other hand, in addition to having the deficiency judgment attached to other property, your wages could be garnisheed.

Although you are already through the intermediary process (i.e, you're a bit late for HUD counceling) and the article doesn't apply, you may take solace in the “above the fold” story in today's NYT. Although no one has accused Tan-Jell-O of being a public relations poster child (except when courting Democrat legislators) but he speaks the Truth.

jameshogg

Hi rljinvestors,

What's important is in which state you live in and whether your mortgage has been taken out to purchase the house. If your loan is a purchase mortgage and yours is an anti-deficiency state, only then you may not have to pay the deficiency.

Thanks

Guest

Is Texas a walk away anti-deficiency state??

Niicss · Posted: Tue Jul 15, 2008 6:15 am Post subject:

welcome ozarktallman.

Yes Texas is an anti-deficiency state.

Guest

Is Michigan one of these states??? I'm scared to death of what I'm facing.

sara · Posted: Wed Aug 27, 2008 5:18 am Post subject:

Hi aimzube,

welcome to the forums.

Michigan is a deficiency judgment state. By the way, are you in foreclosure? feel free to share your situation with us, so that we can help you find a way out of foreclosure.

Take Care

Guest

Is AZ a walk away state

smithsussane · Posted: Wed Sep 24, 2008 11:11 pm Post subject:

Hi Jack!

Welcome to Forums!

Yes, AZ is a walk away state.

Feel free to ask if you have further queries.

Sussane

Posted: Thu Sep 25, 2008 7:38 am Post subject:

Is NC a walk-away/no deficiency state? Thanks.

jerry · Posted: Sat Sep 27, 2008 4:05 am Post subject:

Hi guest!

Yes, North Carolina is walk-away/no deficiency state. Here deficiency judgments can be obtained easily.

Thanks,

Jerry

Guest

I live in NC and my lawyer said that this is not a walk-away/no deficiency state.

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