In Foreclosure Can Lender Sue For A Deficiency Judgement?

If the property is worth less than the total amount owed on the mortgage loan, could a deficiency judgment could be pursued by the lender.

Comments(6)

  • JohnMerchant4th January, 2007

    Law on this question is different stte to state.

    In some of the statutes yes, the lender can come back and sue the borrower for a DEFICIENCY JUDGMENT to collect its losses.

    Some of the statutes say it can only be done on a non-residential loan; others say any loan can have suit for DJ filed after foreclosure.

    So find and read YOUR state stautes on foreclosure and DJ.

  • mcole4th January, 2007

    Also… even in states that allow a deficiency judgment, it can depend on if the foreclosure is done as a judicial or non-judicial foreclosure.

  • energy4th January, 2007

    Besides an attorney, where can I find out this info?

  • donanddenise4th January, 2007

    try this for an anwer
    http://www.foreclosurecounseling.com/foreclosure_help/antideficiency.asp
    it should be able to help you
    [addsig]

  • JohnMerchant4th January, 2007

    Anybody can go to his county law library and find his own state statutes, then find foreclosure laws and read it for himself...no lawyer necessary.

  • finniganps5th January, 2007

    The other thing to consider is you may receive a 1099 for the relief of debt income and need to pay tax on this.

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