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Deficiency Judgment filing limitations

Discussion in 'Short Sale Outpost' started by airahcaz, Oct 25, 2010.

  1. airahcaz

    airahcaz LoanSafe Member

    Is it true that a lender has 6 months to file and pursue deficiency?
  2. Ready2Run

    Ready2Run LoanSafe Member

    It really depends on the state that you live in and the laws there. I am in California and from what I have read, I believe the banks have 7 years here in California to come after you for a deficiency.
  3. airahcaz

    airahcaz LoanSafe Member

    NJ. Need help on this verbiage that I found:

    For those in New Jersey facing deficiency judgments, New Jersey laws allow deficiency actions in cases where the proceeds of a public sale after a foreclosure is less than the loan amount. The defendant is liable for the difference between what was received at sale and the amount of the original loan. The courts determine the deficiency amount by considering the fair market value at the time of sale. Deficiency actions must be brought within three months of the foreclosure proceedings.

    Current Laws in New Jersey

    2A:50-1. No personal deficiency judgment in foreclosure actions or execution thereon for balance due

    No judgment shall be rendered in any action to foreclose a mortgage for any balance which may be due plaintiff over and above the proceeds of the sale of the mortgaged property, and no execution shall issue therein for the collection of any such balance.

    2A:50-2.1. Time for bringing action on note for deficiency

    In the case of a mortgage given to secure a debt evidenced by a note, where foreclosure proceedings are instituted within the time prescribed by the Statute of Limitations, action on the note for any deficiency may be commenced within the 3-month period provided by N.J.S. 2A:50-2, regardless of whether said action would otherwise be barred for lapse of time.
  4. Ready2Run

    Ready2Run LoanSafe Member

    Well I have no idea about NJ laws but it seems like you found your answers. I would always consult with a lawyer in your area just to make sure. Most of the time you can get a 1/2 or 1 hour free consultation and get this information confirmed.
  5. airahcaz

    airahcaz LoanSafe Member

    Actually, having trouble deciphering the verbiage :(

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