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Hello,
If a senior citizen couple whose only income is from social security were to have their house foreclosed (they owe more than the house is worth),what are the odds that the bank would file a deficiency judgment against them. They have no savings, no stocks, no retirement fund. This is in New Jersey. They owe about 40k more than what the house is currently worth. Thanks for your answers.

jameshogg · Posted: Tue Jan 31, 2012 10:35 pm Post subject:

Hi ruttster,

The bank/lender has the rights to come after the senior citizen to recover the deficient balance. However, in case, he is able to prove his financial hardship, then the lender may forgive the deficient balance. But in that case, the senior citizen will have to pay taxes for the forgiven debt.

Thanks

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deficiency judgment law in new jersey

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