Post-Foreclosure collections

[abe1001]

I live in Florida. I had an investment home repossesed by the bank in December of 2007. I have spoken with several attorneys that say that lenders won't do anything but file a deficency judgement against me and leave a bad mark on my credit report. So far, I haven't received a single phone call about the house or any mail. Has anybody else been in this situation? Is it true what the lawyers say? It would be a huge relief if the worst of it was over.
Thanks

[HHM]

Well, having a deficient judgment against you is not a good thing. I would imagine that somewhere down the road either the lender or a debt buyer would initiate collection activity, after all, it is a judgment which can be used to garnish wages, lien property, etc. From a collection standpoint, having a judgment is the best possible situation, I can't imagine they would simply let it "go away".

[Rover]

having a judgment is the best possible situation

Did you intend to use the word "best" in that phrase?

If so, can you explain what you mean by "having a judgment is the best possible situation"?

[HHM]

Having a judgement is the best possible situation---FROM THE COLLETORS STANDPOINT

[Hillbilly]

I live in Florida. I had an investment home repossesed by the bank in December of 2007. I have spoken with several attorneys that say that lenders won't do anything but file a deficency judgement against me and leave a bad mark on my credit report. So far, I haven't received a single phone call about the house or any mail. Has anybody else been in this situation? Is it true what the lawyers say? It would be a huge relief if the worst of it was over.
Thanks

I had an investment home in Michigan which I had to let go into foreclosure in 2006. The renters lost their jobs and stopped paying, finally moved on, and then house sat vacant for several months.
I recieved only one phone call from the lender, I explained that I could no longer make the payments.
The lender determined that the property was abandoned and uninhabited, which allowed them upon sending notification, to commence foreclosure in 30 days.
The house has since been sold and remodeled (I have no idea for what price, or the terms- it needed a LOT of repairs, and was a total "money pit" all the while I owned it)
In 2007 I recieved a " Form 1099-C " from the lender which I had to file as a "forgiven debt income" of $58K on my taxes, which "income" added on another $8K to my tax bill.

However, according to my tax preparer, it appears that I was insolvent at the time this form was issued, to the extent that the entire amount of this so called "income" will be forgiven, and I will even be receiving a refund!

I sure hope so, because the last three years has really beaten us up and brought us down from a life-time of middle-class living, to poverty level low-income, with no savings and no significant assets left. Lost our home of 31 years to foreclosure, along with the rental, and our entire life savings.

Two bright spots, we were able to buy our place here in the hills of Ky ($0 down) just before everything in Mi went under, and
thankfully, I do have a retirement pension that we are still able "scrape by" on, living from check to check.
This is likely why they didn't try to seek a "Deficiency Judgment", from us, realizing that they would never succeed in extracting any more blood from this turnip.
Your situation may differ (hope to hell it does).

[abe1001]

Well, I went to a Bankruptcy attorney yesterday. He looked over my particulars and told me not to declare Bankruptcy because all I have are foreclosures on investment properties and my own home is current, my wife and I are working and we have no credit card debt. He is the 4th attorney to tell me that the once the banks foreclose on a property that they will not persue me. They can if they choose to, but in Florida it just doesn't happen. So, that is my story.

[HHM]

Yeah, it is hit or miss whether a mortgage company will actually pursue the deficiency. Honestly, I think the tax right off on the loss is better for them then trying to collect the debt.

[abe1001]

One real estate lawyer told me that in 30 years, he had never seen one bank persue anybody. But, this is Florida. A debtor friendly state.