---

Am I responsible for any deficiency balance?

Author	Message
	Add to del.icio.us Add to YahooMyWeb Add to Simpy Add to BlinkList
Guest	Posted: Mon Jun 27, 2011 10:47 pm    Post subject: Am I responsible for any deficiency balance? Like 0 Dislike 0 My condo (in Michigan) recently sold at sheriff's sale for 50% of what I owe. The lender was the highest bidder at the auction. I contacted the debt collector agency representing the bank for the new pay-off amount in order to redeem the property. Before I make the "redemption" payment, should I be requesting the bank to waive any deficiency rights or hire a lawyer to do so? Will the bank come after the deficiency balance even though a price was set for the redemption of the property? I'm looking at this situation the same as having a collection agency requesting a pay-off on a medical bill, or a credit card.. You have the opportunity to negotiate with the collection agency for a different amount than the one owed... Am i wrong to use this analogy? Will the bank potentially come after the deficiency even though it has hired representation to collect a defined amount? Thank you
sara Moderator Joined: 05 Jul 2006 Posts: 2699 Location: New Brunswick, New Jersey 497.27 Dollars($)	Posted: Tue Jun 28, 2011 2:10 am    Post subject: Like 0 Dislike 0 Hi Guest, You will have to redeem the property from the lender and not from the collection agency. You will be able to redeem the property if you pay off the deficient balance in full along with any other late fees or charges. You can request the lender to waive off any deficient charges. You don't have to hire a lawyer for the same. However, it will remain the discretion of the lender whether or not he will consider your request. Take care
ab1032 Joined: 27 Jun 2011 Posts: 1 1.21 Dollars($)	Posted: Tue Jun 28, 2011 5:27 am    Post subject: Like 0 Dislike 0 The Lender is telling me to only contact the Attorney's (collection) agency since they are the bank's representation now. The pay-off consists of writing a cashier's check to the bank for the pay-off amount and another cashier's check to the Attorney as a fee for recording and preparing the redemption receipt (returning the deed in my name, ~$160). That's what I was explained. Is this the right approach? I would probably need to contact the bank to understand what department I need to address the request for waiving the deficiency balance letter...
adonis Joined: 22 Oct 2005 Posts: 10562 Location: ALASKA 1089.18 Dollars($)	Posted: Tue Jun 28, 2011 9:43 pm    Post subject: Like 0 Dislike 0 Hi ab, I guess you should do as your lender says. Nevertheless, you can even contact an attorney and take his opinion in this regard. _________________ Procrastination is the enemy of your financial success

Quick Reply
Your Name
Subject
Image Verification	Enter the code above here : Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours

Page 1 of 1

---

We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0