Posted on: 16th Nov, 2009 05:09 pm
My house will be sold at auction for less than what I owe. Do I have to pay the mortgage company the difference?
It depends on what state you live in. Google your states Foreclosure laws.
Hi rutherfordtl,
In most of the cases, the borrower remains responsible for the deficiency from foreclosure sale of the property. It is at the lender's discretion whether they will come after you for the deficiency. Generally, they do come after you to recover the balance of the loan amount. There are anti-deficiency laws in certain states. But these laws do not always apply to all situations. You can contact a foreclosure attorney to know more on the anti-deficiency laws in your state and how they can be applied in your situation.
In most of the cases, the borrower remains responsible for the deficiency from foreclosure sale of the property. It is at the lender's discretion whether they will come after you for the deficiency. Generally, they do come after you to recover the balance of the loan amount. There are anti-deficiency laws in certain states. But these laws do not always apply to all situations. You can contact a foreclosure attorney to know more on the anti-deficiency laws in your state and how they can be applied in your situation.