Defiency Judgement Alabama

[Dannmcg357]

If the foreclosure is non judicial, can the mortgage company still sue for defiency judgement? I read somewhere they can only sue for DJ if it is a judicial foreclosure.

[StartingOver08]

Check this link for Alabama Forclosure laws (summary): http://www.realtytrac.com/foreclosur...osure-Laws.asp

Apparently Alabama allows for a deficiency judgment: http://www.foreclosurelawfirms.com/t...ency-laws.html

However, there are exceptions. Was this a primary residence for you? Have you filed for BK or do you plan to file for BK? Was the loan the original purchase money loan on the property or did you refinance at any point after your original purchase? The answers to these questions will make a difference on whether a deficiency judgment can be persued or not.

[JustFileSuit]

Keep in mind that if it is a "strict foreclosure" then there is no property sale, so there is no deficiency for the courts to consider, and you end up with no deficiency judgment. (The bank may sell it, but the sale is outside the Court's supervision, hence jurisdiction).

At least that is how I construe it; I invite other readers to offer their experiences.

[Dannmcg357]

I can hope for such. Can I just call my mortgage company and ask "Hey, what type of foreclosure are you going to use?"

[JustFileSuit]

Nope. that is up to their attorneys. You find out when they file the suit.

[Dannmcg357]

Well, my wife and I have moved out and haven't made a payment since Oct 09. I can't string the mortgage company along any more and suspect they will start foreclosure in the next week or so. I plan to file next week, in the mean time should I come clean with the mortgage company and tell them I have moved out, I don't intent to keep the home, and I am filling BK7? I am in Alabama, it is a land home mortgage for a manufactured home (trailer for all intent and purposes). Their will be a huge defiency. Count down to the nitty gritty and getting nervous.