Deficiency Judgement

[COUMAC]

If your property is foreclosed and their is a deficiency judgement, can you be forced (by the bak, court, collection agency) to sell your other property to settle the judgement?

[The Professor]

The short answer is "it depends" on whether or not the property is "non-exempt." For that you need to look at state laws relating to what are "exempt assets."

Daniel

[COUMAC]

Thanks for your reply. This an investment/rental property in NJ.

[The Professor]

When looking at exemptions, the state of residence applies (not the state were the investment is located). Do you live in New Jersey?

Daniel

[COUMAC]

Yes - I live in NJ.

[The Professor]

You can google the following and the first entry will provide a list of New Jersey exemptions that are not subject to creditor levy:

New Jersey Exemptions


Daniel

[COUMAC]

Prof,

I did as you suggested and it all relate to bankruptcy. I'm not seeking to do bankruptcy. I just was to know if creditors or the court can force you to sell another property to settle a deficiency arising from foreclosure on another property. Indeed, can credit companies fore you to sell your property to settle a credit card debt if you default?

Thanks

[The Professor]

I understand that. But those exemptions that are listed for your state (New Jersey) are ones that a creditor cannot attach and sell to satisfy their judgment. Anything else (and that is obviously a lot of stuff), they can.

Daniel