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caroesner · Joined: 20 Aug 2010 Posts: 1 1.38 Dollars($)

Hello -
We purchased our home in NC in Dec. 2005. In 2006 we took out a home equity line from the same lender. We owe $226K on the 1st and $42 on the 2nd. The lender foreclosed on the property and was to only bidder @ $209K. This home was our primary residnence form 5/06 to 10/08.
My specific questions are...
1) I was told the lender cannot seek a deficiency judgement because they did not include specific language about doing so in the Order of Sale - is this correct? Can anyone elaborate more?
2) What happens now with the 2nd mortgage? Is it an unsecured debt that the lender or their collectors can come after us for?
3) We are unemployed and moving from NY to CA; if the lender tries to collect on the 2nd; is it true that cannot attach our wages for this type of debt?
Thank you!
Chris

adonis · Posted: Mon Aug 23, 2010 12:00 am Post subject:

Hi caroesner,

As far as I know, North Carolina is an anti-deficiency state. The lender will be able to foreclose the property but won't be able to come after you for the balance dues resulting from the sale.

However, the lender can come after you for the second mortgage. It will not be forgiven. If you don't pay off the dues, the lender will charge off the mortgage and assign it to a collection agency.

If you're unemployed, then the lender will not be able to garnish your wages. However, if you've a checking/savings account, then the lender will be able to garnish it.

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