Can the lender seek a deficiancy judgement before the home is sold, or do they have to wait and see what the property sells for? Do they get the deficiance on what you owe and ajdust when the property sells or do they have to wait and see the exact deficiancy amount berfore they can sue you?
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The lender cannot seek a deficency until after the sale. And I believe this is after the Sheriff's Sale.Bankruptcy History:
Chapter 7 filed - 10/12/2005 - Asset
Discharged - 02/16/2006
Case Closed - 11/08/2007
A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain
All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation. -
Deficiency judgments cannot be issued prior to the auction/Sheriff's Sale as they represent the difference between the selling price and the loan amount. DJs aren't a given in a foreclosure situation. Some States don't permit them and some lenders don't pursue them.*Filed: September 23, 2009 *341: November 4, 2009 *Discharged: January 4, 2010 *Closed: January 20, 2010
Hakuna Matata...it means NO WORRIES!
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Ah! Trick question! My gut-feeling answer would have been "No -- no deficiency judgment without a sale." But I ran into a situation like this not long ago:
The 'home' was a mobile home that was situated on rented land. It was totally destroyed by fire. Unbeknown to the lender, the owner had under-insured. So they sued him for the deficiency -- the difference in the insurance proceeds and the amount of the debt.
So yes, in some situations, there CAN be a deficiency judgment without a sale.Pay no attention to anything I post. I graduated last in my class from a fly-by-night law school that no longer exists; I never studied or went to class; and I only post on internet forums when I'm too drunk to crawl away from the computer.Comment
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