Deficiency Judgement?

Question

Can an individual file a Deficiency Judgment on you from a Warrenty for deed?
I have been dealing with these people for quite some time. The home was not taxed in my name, loan was not in my name, the house is already sold supposedly, and they are saying they will file the judgement with all the credit bureau's plus any property that i own now or acquire in the next seven years.
I dont understand all of this. 3 months ago they needed a quit claim deed now they sold the house. if it is not one thing it is another.
thank you.

I was under a Warrenty for deed with these people, got behind on the payments, they told me if i couldnt make the payments they needed to sell the home so i turned over the keys to them. then they said "i" defaulted. then they said i owed them an LARGE amount of money. They got a lawyer, we played tag, They wanted a quit claim deed 1,000 in payments over 10 months then they would give me full release of further claims against me. I told them yes on the 1000 in payments but full release now, quit claim at end of payments. they didnt like that. So they wanted quit claim I wanted release so they kept sending "if you no longer agree with the 1000 we will take further actions" i kept sending " i still agree im just waiting on the revised paper work" they sold home with out my quit claim deed now still want 1000 or deficiency judgement. that was an email i got from them. The loan was in there name. It even said in the contract the home was Not to be registered with the city.

I guess I have another question. Over and over I have requested paperwork from them and have not gotten any. I understand I may owe them the 1000 so do I have the right to still ask for a total of what I owe them and proof that the house is sold? And as long as I send them something toward that amound owed will that keep them from filing the judgement? I feel they have taken advantage of me a bit, dont want it to go on my credit, I did agree to pay them the money, never signed the paperwork (for the 1000) but they also said in the email they want this taken care of by the "end of the year" I cant come up with the full amount by the end of the year. I feel they are just waiting for me to slip up so they can do something else. That is why I just keep sending certified registered mail responces of "i am still in agreence with this i am just waiting on revised paperwork" I will not agree to something i can not finiancially up hold.

Answer 1

i'm sure there more to this story. However, based on what you said, if the loan was NEVER in your name, I'm not sure how you could be responsible.

If the loan was in your name, and just because you did a quit claim deed to transfer title, doesn't mean you transfer the loan.

Answer 2

Okay I dont really understand your question so this is a best guess.

1. You cant file for a deficiency judgement if you werent deficient. You are saying you were not on the loan so how could you be deficient agaisnt something you didnt agree too.

2. Which is probably more accurate. The loan was not on your name but you signed an agreement to do a lease option or purchase ect. The person on the loan was acting as the bank. They gave you a loan and possible a warranty deed ect.

I would say option #2 is more likely. Since you didnt fulfill your agreement to them, they foreclosed on you. At sale they bought it back. The mortgage company probably didnt foreclose on theml, they foreclosed on you. In that case they could get a judgement just like a bank can.

But as to point 1. Its impossible to get a deficiency judgement, if you werent deficient. What were you deficient on?

Thats all I can think of. If you can give more details I will check back and update my answer.


****** UPDATE *******

From what you have said I dont see how they can get a deficiency judgement. They would of had to foreclose. They can sue you in small claims for lost money ect. But they dont have the power to just list it on your credit report. It would have to be a judgement placed against you by a judge.

If its only 1,000 I would personally pay it if you owe it. If you dont owe it I would tell them to go to hell and make them take it to a judge.

Answer 3

It is hard to understand your question. You definitely need an attorney. If they do receive a judgment against you the credit bureaus all maintain people at the courthouses to record these judgments on your credit file. Actually, judgments stay out there for ten years I believe. If they do get a judgment against you they can proceed against anything you now or hereafter own, in most states, for the next ten years.

Depending upon your contract, you owe all amounts that would have been due had you paid as agreed, plus any penalties and costs minus any money they received from the sale. Of course your contract governs this as well as state law.

See an attorney, no one on Yahoo Answers is qualified to answer this question because it is entirely dependent upon your jurisdiction and the terms of the document itself. If it was an ordinary deed of trust from a "self help" state, then you still owe anything you have not paid, any costs they paid, interest on those costs, interest on your behind payments minus any money from the sale of the home. Since the judgment rate of interest is higher in most states than the loan rates, you will actually see your rate increase above the rate you were paying. In my state it is cheaper to go to the bank to get a loan than have a judge declare a judgment against you because my state has a very high interest rate.

Answer 4

Your terminology sounds different than I am used to hearing, but it sounds as though you had a land contract on the house. If that is correct, then you had a vested interest in the property. They need a quitclaim deed in order to avoid foreclosing on you. It seems that they did not foreclose on you, but sold the house without your permission. The existence of a land contract, whether recorded or not, gives you certain rights, not the least of which is a vested interest in the property. What they did sounds illegal to me. If equity existed in the property then that is your equity minus any payments owed to them. I would not pay them a dime until I consulted an attorney. It sound as though you have a case against them for illegally selling a property in which you had an interest and equity. Their need for a quitclaim deed from you is the sticking point. They knew you had an interest and they just went the easy route and are now trying intimidation. Get a lawyer, you have a good case.

Answer 5

From your post, it's impossible to say how you are involved.

They can't file a deficiency judgement against you if you were merely a renter.

If the mortgage and title was not in your name, then you don't own the house.

If we are missing something please post more details.