Foreclosure and Anti Deficiency Law in Texas

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Icon Mini Profile rednaxela2001





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Post Posted: Mon May 19, 2008 5:18 am    Post subject: Foreclosure and Anti Deficiency Law in Texas
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I am facing a foreclosure in Texas and I am also a Co-Signee of a property bought by my son in law(primary owner) in Georgia.

1.Does my foreclosure affect my son in laws property? Can the lender of my soon to be foreclosed property put a lien on the property that I co signed with in case there is a recovery of defeciency from the lender?

2. Can anybody give me a solid answer regarding "defeciency law in Texas" I have been reading different answers. Can the Lender sell my property below fair market value in Texas? I read in other website that it should be sold in fair market value.

I need help badly and your answers are really helpfull to me.
Icon Mini Profile Niicss
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Post Posted: Mon May 19, 2008 5:39 am    Post subject:
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Welcome rednaxela,

The lender cannot sell the property of your son in law. The lender cannot even place a lien on his property.

If you face foreclosure then you will need to pay the deficiency amount after selling the property. By the way have you consulted with the lender? Consult with him and check whether you can avoid foreclosure or not. How many payments have you missed already?

Check out how can you avoid foreclosure at http://www.mortgagefit.com/foreclosure/17ways-avoid.html

Let me know if you have any further quires.

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Icon Mini Profile rednaxela2001





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Post Posted: Mon May 19, 2008 6:57 am    Post subject: Deed In Lieu
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Thank you so much...Just to make sure I understand your kind answer. Even I co-sign my son in law, the lender who will forclose my own property CANNOT put a lien on my son in laws property?

I talked to my lender last March 2008, and voluntarily surrendering my house in Texas. They told me to put the house in the market for at least 90 day, if there will be no buyer, then they will proceed on the foreclosure process, but they told us to keep up with the payment until the foreclosure time but from that time on I already missed at least 3 payments to date. I sent them a letter that I can no longer pay the monthly mortgage that is why I am volutarily surrendering the house. By the way, the house is not occupied (empty)now because we decided not to move to Texas anymore. We bought the house last May 2006 and rented it out for a year (2007) just to cover at least the monthly mortgage before we move in.
My other question is:
Does the "DEED In Lieu of foreclosure" that I filed to my lender favorable to me since I am not interested to keep the house anymore. Its a lost in my part, but all I want is to get rid of the house.

Thank you so much and I appreciate your immediate answers. I do appreciate. Thank you, thank you
Icon Mini Profile larry





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Post Posted: Tue May 20, 2008 4:10 am    Post subject:
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Hi Rednaxela,

Welcome back.

If you don't want the property and also cannot afford the mortgage payments then it is better to go for Deed in lieu of foreclosure because the lender may not come after you for the deficiency judgment. But the credit affect will be same as foreclosure.

So the bottom line is if the lender accepts the deed in lieu of foreclosure then he will neither place lien on your property nor on the cosigner's property. But if the lender forecloses then he may place lien or garnish your and the cosigners wages

Feel free to ask if you have any further questions.

Best of luck,
Larry
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Post Posted: Wed May 21, 2008 6:06 pm    Post subject:
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Hi Rednaxela,

I agree with Larry. The only thing I would add is that you could also consider a short sale.
Icon Mini Profile cliff3

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Post Posted: Wed May 21, 2008 6:08 pm    Post subject:
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sorry i was logged out that was me who posted the last post.
LLS2008

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Post Posted: Tue Dec 02, 2008 1:39 pm    Post subject: Be careful about the advise you are getting
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The answers you have gotten, may or may not be correct. Few lenders allow you to co-sign with your son-in-law or anyone else without your name being on title. If your name is on your son-in-laws property and a deficiency judgement is obtained against you, the lender may obtain a sister-state-judgment and lien the Georgia property. Many lenders will give you a complete release for a Deed In Lieu of Foreclosure if you negotiate with them and the deficiency is not huge. If you didn't get one, you should have tried to. In the meantime, you may want to get your name off of your son's property. That is simply done with a Quitclaim deed. It should not affect his loan, but may prevent a lien if you are on title---which would normally be the case. Real Estate attorney of 20+ years. Prior to that title officer.
mariana

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Post Posted: Wed Dec 03, 2008 2:21 pm    Post subject: car repor
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I am being sued to pay the deficieny on a car that was repo.......what are the laws concerning that issue
Icon Mini Profile adonis
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Post Posted: Thu Dec 04, 2008 1:37 am    Post subject:
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Welcome mariana,

As far as I know, you can be sued for the deficiency. The lenders may even garnish your wages and may be able to put a lien on your home if they can obtain a judgment.

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