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Has anyone actually had a deficiency judgement filed against them after a foreclosure?

Discussion in 'Bank of America Mortgage Help' started by COBALTBLUE, Apr 18, 2011.

  1. COBALTBLUE

    COBALTBLUE LoanSafe Member

    I keep reading about how to avoid them and I certainly don't want to get one filed but I am wondering if there is anyone here who actually have had this happen especially when it was a single family residential property and lived in by the owner and foreclosed not short sale? I realize a lot of people on here are in non recourse states but we are in BOA Michigan owned by fannie mae so we are in a recourse state.
  2. shortsale973

    shortsale973 LoanSafe Member

    I agree. I am in NJ a recourse state.
    I am co-posting w/ COBALTBLUE.
    Has anyone had a def. judgment filed?
  3. milestogo

    milestogo LoanSafe Member

    BUMP. I would also like to know! I am in a stalemate with PMI on my short sale and its looking like I may just have to sign off on the sale with the deficiency language in tact.

    Please let us know if anyone has been pursued for the deficiency via judgment! I'm in BOA Missouri, Fannie Mae + PMI situation. Deficiency of 30K with current offer.

    Thanks!!
  4. TomEason

    TomEason LoanSafe Guide Staff Member

    milestogo
    Please do not sign a document admitting there is a balance owed, i.e. deficiency language. You would be making it easier for PMI to sue by giving them admissible evidence and hence a better case. If you refuse to sign, it's very doubtful PMI will sue you for only $30k because the costs of suit and court costs represents $$ PMI will have to pay upfront. If I were you, I'd blow up your SS deal and let the home eventually go to FC. And, BTW, by so doing you will likely be able to remain in your home for a much much longer time, mortgage payment and property tax free. You might visit The HAMPSTER Wheel Game thread in the Chase forum for some great tips on how to do that. Good luck!
  5. puppyted

    puppyted LoanSafe Member

    I would be interested to know also. "Has anyone actually had a deficiency judgement filed against them after a foreclosure?"
    I am in a non-recourse state, CA.
    But, our 1st was refied a couple of times, with all $$$ going into home improvements.
    Our 2nd is an equity line, again with all $$$ going into home improvements.
    Both mortgages are with IndyMac. The home has been our principal residence for 13 years.
    One minute it seems I understand that there will be no recourse, then the next minute I read something else that makes it seem like the lender will be able to come after us.
  6. TomEason

    TomEason LoanSafe Guide Staff Member

    puppyted
    It's important to note that in CA lenders never use judicial foreclosures for small residential loans; always trustee sales. If your Indymac 1st FCs, they get the house. Your Indymac 2nd is wiped out at that foreclosure and becomes a sold out junior. Even though that loan is recourse and the lender might not be legally barred from suing you, I have yet to see any evidence of any sold-out junior lender in any state sue a borrower. And, in your case, since Indymac holds both loans you might be further protected by the CA "merger doctrine". If you want more info on that, I suggest you Google it. So, bottom line, you should relax a bit. Good luck.
  7. seashells48

    seashells48 LoanSafe Member

    Milestogo: I had PMI with my mortgage also. My short sale closed in June, 2010. I did sign the sale papers with the deficiency clause. According to the 1099C my deficiency was $30,000. I received a notice this year from BofA stating they would not pursue the deficiency (Illinois is also a recourse state). I haven't heard anything at all from PMI. I'm hoping this is the end of the nightmare!
  8. shortsale973

    shortsale973 LoanSafe Member

    thanks for sharing seashells48.
    Thanks for shining a bit of hope amongst us.
  9. OverandDone

    OverandDone LoanSafe Member

    Bumping this question. Anyone on a FIRST mortgage?
  10. Djinn

    Djinn LoanSafe Member

    Bumped again.

    I think the lack of replies answers the question, but I would be very interested to know if anyone, especially anyone in NV, has had a deficiency judgement from a first mortgage.
  11. DoneWithBmore

    DoneWithBmore LoanSafe Member

    Did you ever get an answer to this question? I'm wondering the same thing about Maryland.
  12. Djinn

    Djinn LoanSafe Member

    Nope. As I said, I think the lack of replies is a statement. :)
  13. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    IMO I would not be worried about a possible deficiency judgment. Of course many states do allow a lawsuit for a specific amount of time after the foreclosure, but over the last 7 years we've seen VERY few borrowers who were actually pursued. We have nearly 150,000 members now from all over the country and can recall maybe 5 or so from fellow walkers.
  14. Djinn

    Djinn LoanSafe Member

    Thanks Evan! No news is good news ;)

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