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mtrain2005 · Joined: 04 Feb 2010 Posts: 1 1.50 Dollars($)

I'm am currently in the process of waiting on an approval of the Short Sale of my home. My question is concerning the deficiency law in Texas. I owe 34K more than fair market value. Is there anything in place to stop the bank from filing for a deficiency judgment against me? Do I need to request for the bank to somehow include wording in the Short Sale approval that they will waive their right to go after me?

jenkin7 · Posted: Thu Feb 04, 2010 10:36 pm Post subject:

Hi mtrain,

If your lender approves the short sale, you will be liable to pay off the deficiency. Unless you pay it off, the lender can come after you for the deficient amount and get a judgment against you. You can negotiate with the lender and have the deficiency forgiven by him. If he does forgive the deficiency, you should ask him to give it to you in writing that he will not sue you for this debt. However, you can also consider the option of doing a deed in lieu (DIL) of foreclosure on the property. Most of the lenders do forgive the deficiency from the DIL.

Guest

If you look at the website you will find that the govt has put into place a provision for these judgements. Look for IRS form 982. It will forgive deficiencies due to insolvencies. Dependent on your specific situation, but 90% of all short sales if handled correctly go without a def. judgement. Check with your tax person for clarity.

Guest

Its complicated but my home forclosed in 2-07 andi was told yesterday by my 2nd mortgage the were not paid so they are going to file a judgment.I live pay check to pay check with 3 kids in tx what can I do I have nothing and barley have a job

jenkin7 · Posted: Mon Mar 01, 2010 12:13 am Post subject:

Hi Tammy,

If you do not have the financial ability to pay off the second mortgage balance, the lender is unlikely to file a judgment against you. However, if you can manage to pay some amount of money each month towards this debt, you can talk to the lender and set up some sort of repayment plan to pay the balance off. You can also negotiate with them to settle the debt for less than owed.

Guest

I live in Texas, had a forclosure, wells fargo baught house from themselves for 191k when i owed them 183k,,, i think they have sold it to somone else at 200k+. second mortgage was not paid. can they go after my new husband if we ever own anything together? we are engaged, but thought we would draw up a prenupt stating he is not going to be responsible for any of my former debts. ? i don't know. I hope to work out something with the second lender, but also... wouldn't they have to half the debt between me and the X hubby that owned the house before we divorced? I hope i can work an agreement with them for a portion of my half of the debt. sound like a possiblilty?

savior70 · Posted: Wed Apr 07, 2010 3:00 am Post subject:

To Beverly,

The second mortgage lender can come after you to collect the outstanding loan amount. If the debt has been charged off and sold to a collection agency (CA), the agency will collect the debt from you. Though your new husband will never be sued for this debt, the lender or the CA can still come after assets jointly owned by you and him. A pre-nuptial agreement could be helpful in this situation. But consultation with an attorney in this matter is advisable.

It's true that both you and your ex should be held responsible for the loan because both of you are on the second mortgage. But this debt cannot be split into halves as you've suggested. Since both you are on the loan, you both share the responsibility to pay it off.

Posted: Sat Jun 05, 2010 7:13 am Post subject: to mtrain.

In Texas. Lenders have up to 2 years after foreclosure to file for a deficiency judgment.

Posted: Sat Jun 05, 2010 7:13 am Post subject: to mtrain.

In Texas. Lenders have up to 2 years after foreclosure to file for a deficiency judgment.

Posted: Sat Jun 05, 2010 7:13 am Post subject: to mtrain.

In Texas. Lenders have up to 2 years after foreclosure to file for a deficiency judgment.

oswingrant · Joined: 13 Mar 2010 Posts: 57 0.39 Dollars($)

All you have to do is ask your lender or servicer if they are going after or do they plan to go after any resulting from any short sale of the the property and they will tell you. with the mortgage climate, lender are not going after deficiencies.

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Short Sale and Deficiency Judgement in Texas

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