We are too far behind on house payments to be able to afford a Chpt. 13, and make too much money to do a Chpt. 7, so it looks like we'll just have to foreclose on our home. SC is a deficiency state and our mortgage is 133, but house is appraised at 86. How does the deficiency work? Do they come after you for the difference (garnish wages, take property, tax refunds, etc)? Thanks
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Your lender is going to foreclose and then will "attempt" to sell the home, at some point in time. That point could be as short as a couple of months or could go on for months and months and months.
With SC being a deficiency state, they are going to take the amount of the loan, less the sales price, add all of the fees, fines, charges, and the kitchen sink to the bill that you owe.
As for your question as to "do they come after you"?
They might, they might not. That varies from lender to lender. Some of the lenders have in house collections that attempt to collect, some farm the out to third party collectors. You really won't know what is going to happen until it does.All information contained in this post is for informational and amusement purposes only.
Bankruptcy is a process, not an event....... -
why not do a chapter 13 and surrender the home. have they already started the foreclosure process? If you surrender they may not be able to come after you for a deficiency. We surrendered ours and they proceeded to take it out of foreclosure when they should of foreclosed (stay was lifted at confirmation) . now we don't owe them anything. We were in a chapter 13 in nov. 2010 but due to lack of claims filed we were discharged in june.Comment
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