Can the mortgage company sue for deficiency?
This is an actual comment for a client:
”The only thing we have gotten from our lender is a default. So since I don't know how foreclosure works I'm not sure if it's in foreclosure.”
We need to know how far behind you are to adequately determine what point you are in the foreclosure process. As I indicated in an earlier post, we need to determine if you can afford the property or not. We need to look at other options to try to keep the house from going to foreclosures such as a short sale or a deed in lieu of foreclosure if you can’t. Either of these options will allow you to walk away from the property and not be sued for deficiency. If you are sued for deficiency the amount could be overwhelming and they only way to avoid paying that amount is to file for bankruptcy. Another option in the bank has is to file with the IRS. If this happens you have to show this amount as income on your taxes.
If you can afford the house we can negotiate with your mortgage company to stop the foreclosure and get you back to making your house payment again.
- Does HOMEQ have the abilty to help us avoid foreclosure? - January 7, 2008
- I need a Loan Modification - December 13, 2007
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IMPORANT NOTICE – PLEASE READ There is no guarantee you will receive a loan modification. Even if you accept this offer and use our service, your lender may not agree to change your loan. Loan Modification approval is dependent on criteria including but not limited to hardship, income, debt ratios. American Foreclosure Specialists is not a Bank, nor a government agency or government affiliate. Our services are not approved by the government or your lender. American Foreclosure Specialists assists in the document preparation, working with and communication with your Mortgage Bank in the attempt to acquire an approved Loan Modification. If you stop paying your mortgage, you could lose your home and damage your credit rating. Loan Modification Plans are dependent upon mortgage company criteria and financial information gathered as part of the efforts of AFS. The information and notices contained on this website are intended as informational and should not be regarded, as financial or legal advice. AFS attempts to ensure that the material contained on the website is accurate and complete at the date first published, however you should recognize that information contained on this website may become out of date over time. Readers who have particular questions regarding real estate law, finance, or who believe they require legal counsel, should seek the advice of a financial advisor or an attorney. Submitting a contact request, gives AFS consent to contact you by telephone and/or email, even if you have previously listed yourself on any state or federal Do-Not-Call List.