Quote:
Originally Posted by Alynn  I let go of my investment property in Las Vegas and I received a summon yesterday for the deficiency of $121K. I have 30 days to respond to the court. This doesn't make sense at all. The reason that I let go of the property because I don't have the money to begin with. What does MGIC (the plaintiff) want from me? I don't have the money that they're asking for. Any suggestions as far as seeking legal advice. |
Arlynn - you need to get ahold of a lawyer that handles real estate law and litigation. If you don't respond timely, you can have a default judgement against you (meaning you will owe the entire amount they seek plus court fees often).
My lawyer (in AZ, but on 2nd mortgage which is recourse) advised if I was sued (rather than getting to settle prior to suit), that he would file for dismissal and handle settlement negotiations directly with them. He told me to plan on paying 20-25% of the balance if that scenario came to be (plus his fees of course). He said you are in a better position if you have cash to bring to the table but otherwise they will arrange payments. I'm not sure but I don't think you can go pro se in this type of case and must obtain legal representation.
If they can get a judgement, they can obtain up to 25% of your income. I believe the amount varies based on the amount you're making (and maybe the state) but that's the lovely possibility I'm facing here.
The retainer for my attorney is $3,000. The retainer may or may not cover the costs of filing the dismissal and negotiations. For me, thats far better than paying the full amount though.
Good luck to you! Keep us posted!