I know I will have a deficiency judgement once house sell at auction (going to foreclosure soon) since prices have dropped in market this house is at. I was wondering what are the chances that they will go for my assets?? I spoke to them only once and asked them if they would try and actaully take my money if the house sells for less ( was asking about shortsale) and they said no, that they would only note on my credit score that i have a deficiency judgement and will be there for 7 years which i dont care as long as they dont take my money so im thinking and hoping no. Also the house i live in is under wifes name, will it affect her? It say on the papers the sue is against me and unknown spouse.. but i was unmarried at the time! Can they put a lean againts where i currently live its under her name only. do the banks actually take money out of your account or paychecks how does it work and is it common them trying to collect the deficiency.
2007-08-05 14:48:35 · 5 answers · asked by Fernando C 1 in Business & Finance ➔ Renting & Real Estate
Most lenders will not go after a person once the property is foreclosed on. This is the collateral they lent on and this it the collateral they collect to pay off any loans owed them.
The foreclosure will appear on your credit report for a certain length of time. As time goes on this becomes less and less important.
It appears as if you live in a community property state where as what is owned by you and your spouse is half owned by the other.
Since you were not married at the time and you were the only one that signed the loan docs, they will only go after you.
They normally can not take a property that they did not finance or cross-collateralized against the property they are foreclosing on. So it appears as if your wife and her property is OK and will not be bothered.
Since they have told you they will not go for a deficiency judgment your pay check will not be garnished or your bank account will not be bothered.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-08-05 16:06:20 · answer #1 · answered by loanmasterone 7 · 0⤊ 0⤋
First of all, have you tried to sell your house? The bank maybe willing to hold off of the foreclosure proceedings if they see that you are trying to get the house sold and make good of your debit. They're in the business for lending money, not owning homes. Also, if you do list the house, see if they would accept a short sale on the house and how low would they be willing to go (they may actually tell you that the amount they would be willing to settle for.)
Secondly, if they are not willing to give you time to list and sell your house, ask if they would take the deed in lieu of foreclosure. It's like a "voluntary repo" of the house. It will still show up on your credit report, but it looks better than "FORECLOSURE" on your report.
If they are willing to do either of the above, ASK them if you do all of this if they would not go after you for the deficiency.
If you have any other questions, please feel to email me at driskelrealtor@yahoo.com and I'll see what I can do to help.
2007-08-05 16:28:12 · answer #2 · answered by jjdriskel 3 · 0⤊ 0⤋
Not sure about a bank, but from a landlord's perspective, I've never gone for a tenants belongings in the case of a judgement. BUT, I definitely attach the judgement, essentially eliminating the former tenants chances of buying a home for 20 years. Oh, and the judgment accrues interest at a great rate. Do yourself a favor, and pay the debt so that you can start with a clean slate.
Good Luck!
2007-08-05 14:58:20 · answer #3 · answered by clueless 3 · 0⤊ 0⤋
If the house is in her name only, and the judgement is against you only, then the house cannot be touched. There are different means by which they can collect against you, but they will have to go through all legal means, and you are entitled to free legal assistance if you cannot afford a lawyer.
It is possible for them to have the money directly taken from your pay, depending on the case. Most child support is done that way.
2007-08-05 14:59:02 · answer #4 · answered by gal friday 2 · 0⤊ 0⤋
Very, very good. They wouldn't have gone to all the legal hassle of getting a deficiency judgement unless they were going to follow through. With a court order against you, it now becomes much more difficult for you to escape them. Talk to a bankruptcy lawyer.
2007-08-05 15:38:07 · answer #5 · answered by Keep On Trucking 4 · 0⤊ 0⤋