Posted: Sat Jul 25, 2009 9:30 am Post subject: Deficiency Judgments from Foreclosure and Protection in Bank
If a bank decides to come after me for a deficiency because of a foreclosure, is bankruptcy an last resort option to protect me from having to pay off the deficiency.
If they win a deficiency, can they place a lien on my current residence and the bankruptcy will not protect me. I already have a new house and the foreclosure is on a home that I was building but was not completed in North Carolina.
If you file bankruptcy and the court issues an automatic stay on your creditors, the lender will not be able to sue you or place a lien on your property. If the property is foreclosed upon before the bankruptcy is filed and you cannot pay the deficient amount resulting from the sale, the lender will place a lien on your new property. _________________ Procrastination is the enemy of your financial sucess
peace
