2007-06-15 04:12:12 · 4 answers · asked by yikes 1 in Business & Finance ➔ Renting & Real Estate
In Michigan?
2007-06-18 03:16:23 · update #1
Hi, the real answer is dependant on both your state and lender. For example, in California, we are a trust deed state and therefore, the lenders are not able to get judgements against us should they take a loss on the foreclosure. Their only recourse, should they use it, is to report the loss to the IRS by doing a 1099, in which you have to pay taxes on the money lost.
It is dependant on your lender as to what they do based on state laws and the options available to them, such as if they were able to recover the loss by their insurance.
Regards
2007-06-15 05:34:56 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It depends on the mortgage company, if they decide to try sale your property as a short sale, they will write you a letter letting you know, however read it carefully it may state in the letter that they will be billing you for the remaining balance , or it may state that they are charging the balance off.
2007-06-15 04:34:17 · answer #2 · answered by Tabitha C 1 · 0⤊ 0⤋
In most cases, yes. The lender may hold you liable for the deficiency, file a judgment against you, and use whatever legal means they can to recover the shortfall. Some lenders engage in this practice directly, and others will sell your debt for pennies on the dollar to a collection agency, which will then pursue you for the deficiency in the same methods.
2007-06-15 04:16:34 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
Depends on which state you live in.
Arizona does NOT have a deficiency judgement.
The I.R.S. will send you a 1099 for any debt forgiven but congress is trying to get this removed.
Hope this helps.
Terry Smith
http://www.Welcome2Arizona.com
2007-06-16 06:28:44 · answer #4 · answered by Terry S 5 · 0⤊ 0⤋