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Deficiency Judgments concerning foreclosures

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ilzhoefer
Frequent Contributor

Deficiency Judgments concerning foreclosures

I realize each state has different rules for the lenders concerning a deficiency pursuit, but a general question:

 

Are the banks more likely to try to get a deficiency judgment right after the foreclosure (since they are already in court) or do they wait 6-8 months and then go back to the courts to get a judgment to pursue the owners?

 

Message 1 of 6
5 REPLIES 5
dt3813
Regular Contributor

Re: Deficiency Judgments concerning foreclosures

i can only tell you that i had a house go through foreclosure in 2009 and I never received a dificiency judgement and my house sold for $150,000 less than what I owed.


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Message 2 of 6
Anonymous
Not applicable

Re: Deficiency Judgments concerning foreclosures


@ilzhoefer wrote:

I realize each state has different rules for the lenders concerning a deficiency pursuit, but a general question:

 

Are the banks more likely to try to get a deficiency judgment right after the foreclosure (since they are already in court) or do they wait 6-8 months and then go back to the courts to get a judgment to pursue the owners?

 


Do you know if you are in a recourse or non-recourse state?

Message 3 of 6
ilzhoefer
Frequent Contributor

Re: Deficiency Judgments concerning foreclosures

It's NC which some sites state it's a Non-recourse, but only in very specific circumstances, so in most cases it's a rescourse state. 

Message 4 of 6
Anonymous
Not applicable

Re: Deficiency Judgments concerning foreclosures

In NC they cannot come after you if it was a specialized mortgage I.E. pick your rate, deferred interest, interest only on some months.....basically non-standard loans. The other loan that cannot be pursued for judgment is a purchase money mortgage where the seller finances you.

 

As far as the Statute of limitations goes, the bank has 1 year to bring action per NCGS §1-54(6)) and then 10 years to enforce the judgment.

 

Now, from the cases I looked up that are of record or affirmed on appeal, the "best" way to defend against the deficiency is to argue that the value of the home is a reflection of the bid down and that the property would in no way sell at the Sheriff Sale price in the current market.

 

Hope this helps,

 

AdCred1

 

 

Message 5 of 6
ilzhoefer
Frequent Contributor

Re: Deficiency Judgments concerning foreclosures

Thank you. It was a regular loan.

It already foreclosed and I have 3 months until the one year is up.

Just waiting patiently.......

Message 6 of 6
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