foreclosure deficiency judgement

Guest 0.10 Dollars($)

I had a foreclosure in Wisconsin after my divorce a little over a year ago. In the foreclosure papers it states "that no deficiency judgement may be obtained against any defendant". But now they are intercepting my taxes and my ex-husbands as well. How can they? Is this legal? And get I get my taxes back? Anyone that can help direct me would be greatly appreciated.
Thanks.

helping_user · Posted: Sat Feb 02, 2008 2:47 am Post subject: RE: foreclosure and deficiency

Welcome Smileych.

Considering the Wisconsin foreclosure laws, it is legal to ask for the payment of deficiency. But if the foreclosure papers state that the lender won't collect it, he shouldn't have asked for it. This indeed is illegal.

larry · Joined: 27 Jun 2007 Posts: 2951 411.26 Dollars($)

Hi Smileych.

Welcome to the forum.

It is true that Wisconsin foreclosure law allows the lender to file deficiency judgment. But I agree with helping user that the lender should not claim deficiency judgment if it was written in the foreclosure documents.

Are you saying that you have paid tax on that amount? If so that is ok because if the deficiency amount is exempted, you would have to pay tax on that amount. But now according to the new forgiven debt tax relief act which came in December 2007, people get tax relief on the forgive mortgage debt.

"I had a foreclosure in Wisconsin after my divorce a little over a year ago." So the foreclosure took place over one year ago. So I don't think that you can get the tax relief now.

Thanks.

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