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Can we be sued by our lenders after our foreclosed home has been sold?

My husband and I are wondering if we can be sued after our house has been foreclosed on. The sheriff sale was a year ago and it wasn't sold there but has since been sold to someone. We had two mortgage companies, a primary (countrywide) and a junior lender. We haven't heard from either one of them and the primary lender told us that after the sheriff sale, we were relieved of our duty to pay but we have now repaired our credit, I have gone back to work full time, and we are talking to the bank about another mortgage for a more affordable home. Do we still need to worry about being sued by either one of our former lenders or are we in the clear to pursue another mortgage? We live in MN where they do grant (even though it's rare) deficiency judgments. Can you give us a general idea of what, if anything, we could expect from the lenders? Is it likely they will sue? Could they end up taking our new home? Thanks for your time.

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi heathercassidy,

It's been a year since your property was foreclosed by the lender. If they had to sue your for the deficiency judgment, they would have done it when they sold off the property. Moreover, your primary lender has told you that you should not worry about your mortgage as you have been relieved from it. So I don't think you should worry about the foreclosure anymore.

Thanks

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sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi heathercassidy,

If the dues of the second lender are not satisfied by the foreclosure sale, then he has the right to collect the dues from you. He may either garnish your wages or can place lien on your other properties. However, if the second lender has forgiven your debts, then it's a different issue. In that case, he won't place a lien or garnish your wages.

Take Care.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:41 | Post subject:

robert.smith2005's picture
robert.smith2005 | Joined: May 22, 2009 07:49 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

have you received any letter stating current status from both the lenders in last one yr?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

In the State of Nevada can a lender foreclose on your primary home and then put a lien on your secondary home if both homes are in that state even if the secondary home is not their security? It is the security of another mortgage company.

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sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Margaret,

As far as I know, the lender can place lien on your secondary property. Though there is a mortgage on the property, the lien will be considered as subordinate to the original loan.

Take care.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

How much of a possibility is there that the bank, following a foreclosure, could garnish or seize liquid assets, such as bank accounts? Would they have to receive a judgement in order to access those accounts and would they only have access to personal accounts, or also to small business accounts that the home-owner is attached to?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Salty,

Your query has been answered in the given link:
http://www.mortgagefit.com/inprocess/about25097.html

Please take a look. I hope it will help you.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

A defeciency judgment has been granted and the sale of property approaches. Can the lender sue me for owed amount differences in the state of South Carolina.

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

Deficiency judgments are allowed in South Carolina. After the property is sold off, the lender will ask you to pay off the balance dues. If you do not pay off the dues, the lender can charge off the account and assign it to a collection agency.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a propery in nevada, which is going into foreclosure. If foreclosure goes through, can bank of america put a lien on my primary residence in california.

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi rosendo,

California is a non-recourse state. The lender will not be able to come after you in order to recover the deficient balance. Thus, they won't be able to place a lien on your property.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If I foreclose on a land loan in south carolina, can the bank put a lein on a commercial peice of property I own in Massachuessetts?

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome campbell,

The lender will have to file a lawsuit in Massachusetts in order to place a lien on your commercial piece of property.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Any thoughts about Ohio? It's been well over 2 years since the beginning of the foreclosure process and a year since the sheriff's sale. I haven't heard anything from either mortgage company (also had a primary and a secondary) post sale. I know my credit took a hit - but I have no plans to buy a house any time soon. Anyone know if Ohio is a recourse state? I was never quite clear about that? Thanks!

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Alice,

As far as I know, deficiency judgments are allowed in Ohio. Thus, it is a recourse state. However, there are chances that the lender may have forgiven the deficient balance.

Thanks

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