Foreclosure - Post sale I Owe on each mortgage

[40finance]

My Credit Report shows I owe on the first and second post the foreclosure and sale of the property.  I did get a government form for the relieve amount on one but not the second.  What happens on the credit report for this amount owed?  What do I do about this if anything with each of the reporting agencies and or banks in question?

[pizzadude]

---

@40finance wrote:

My Credit Report shows I owe on the first and second post the foreclosure and sale of the property.  I did get a government form for the relieve amount on one but not the second.  What happens on the credit report for this amount owed?  What do I do about this if anything with each of the reporting agencies and or banks in question?

---

Does your state permit your creditors to come after you for the balance owed on the mortgages?  

[TrueGeminiNC]

---

@40finance wrote:

My Credit Report shows I owe on the first and second post the foreclosure and sale of the property.  I did get a government form for the relieve amount on one but not the second.  What happens on the credit report for this amount owed?  What do I do about this if anything with each of the reporting agencies and or banks in question?

---

This is a sticky situation.  I had a home that went into foreclosure.  The state of GA gives a creditor 30 days after a foreclosure sale to pursue a deficiency judgment on a first mortgage. 

The second mortgage is where it gets sticky.  I contacted a couple of local real estate attorneys and the consensus was simply, "don't poke the bear."  One attorney suggested that a first and second mortgage closed on the same day for the same property was considered a single transaction and therefore the 30 day rule applied to both mortgages.  However, another attorney suggested that the second mortgage is a promissory note and that the 30 day rule is not applicable.  Thereby, the bank could pursue a claim far beyond the 30 days after the foreclosure sale. 

In my situation, the first mortgage shows a $0.00 balance.  However, the second mortgage shows an outstanding balance of 35K.  Both attorneys agreed that I should avoid disputing the second mortgage balance considering I am approaching the 7 year reporting period mark.   

[superfrustrated]

the first reply is right - its state specific.  Does your state allow mortgage lenders to pursue deficiency rights after foreclosure?  If so, does it give a timeframe in which they must do so?  Chances are, yes you are responsible for the deficiency.  But again - check your state laws.  Depending on how much you want this issue resolved, you should contact your mortgage company to discuss a settlement (if you have any extra money to put towards the accounts) - they are just like other creditors in that they will accept much less than they are owed.  Do you have any idea how much your house was worth at the time of foreclosure compared to how much you owed on your mortgage?  In the current market, I suspect the 2nd lender did not get a penny from the foreclosure sale because there was probably not even enough to payoff the 1st lender.  Therefore your 2nd lender likely still shows a full balance owed.  It is not unusual for 2nd lenders to sue under the Note and obtain a money judgment against you personally.  If this happens, make sure you appear in court otherwise you will have a default judgment entered against you.  Check with an attorney - or if you cannot afford one - do some internet research over how to defend yourself against a creditor in court.