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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?
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.
@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?
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.
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
Thank you. It was a regular loan.
It already foreclosed and I have 3 months until the one year is up.
Just waiting patiently.......