Having a house you love foreclosed on may be a nightmare. It may be both stressful and frightening. Especially if you want to maintain your house and have exhausted all other options to avoid foreclosure. Even if you lose your house, you may face a deficit judgment.
Deficiency occurs when a lender forecloses on a house and subsequently sells it, but the sale price is insufficient to pay the lender’s obligation. After the recent drop in housing values around the country, this has become increasingly widespread. The lender will be unable to collect their loss if the house is worth less than the debt. In order to recover the shortfall, the lender may file a lawsuit against the borrower.
A deficiency action can take years, so the lender may choose to sell the debt to a collection agency, which would pursue the borrower aggressively in an attempt to recover the amount. Deficiency can lengthen and complicate the already tough process of foreclosure.
Your foreclosure lawyer is likely to warn you about deficiency and propose that you seek a deed-in-lieu-of-foreclosure and negotiate your way out of the problem.
When you contact your lender and give them ownership of your property in order to prevent foreclosure, this is known as a deed-in-lieu-of-foreclosure. Because the lender must agree to this, it’s a good idea to ask them to waive your liability for any shortfall as well. They will be able to save a significant amount of money.
They will save a lot of money by not having to go through the foreclosure process, so they may be more willing to forgive the shortfall.
In certain circumstances, the lender will not agree to this agreement, and the borrower will have to choose between attempting to prevent foreclosure and repaying their debt or waiting to be foreclosed on in a regular manner.
Unfortunately, even if you’ve been foreclosed on, you might still be held liable for the debt. The majority of states enable lenders to pursue debtors for deficiency judgments.
When debtors foreclose on their principal house, they are sometimes shielded from deficiency judgments. When a vacation house is foreclosed on, it is fairly typical for the lender to pursue the property.
When attempting to avoid foreclosure or negotiate out of the deficit, speaking with a Foreclosure attorney Arcadia will assist ensure that you are aware of all of your alternatives and any limitations.
Are you now embroiled in a legal battle? In this circumstance, you’re going to require a lawyer. In today’s legal profession, there are several types of attorneys.
If you’re trying to figure out what kind of lawyer you’ll need, you should first figure out what kind of case you’re dealing with. This is because attorneys specialize in particular types of situations.
Divorce attorneys, criminal lawyers, chapter 13 lawyers in Arcadia, malpractice lawyers, worker compensation lawyers, personal injury lawyers, property insurance coverage lawyers, and client fraud lawyers are some of the numerous sorts of lawyers you may employ.