Unclear whether the deficiency would be filed by the lender or by the trustee of the bankruptcy estate.
Yes, the lender can file suit for the outstanding amount and if they receive a judgment they can execute the judgment in the manner in which the laws of the judgment debtor's state allow.
a deficiency judgment should be discharged in a chapter 7 bankruptcy. You should file after you receive the judgment.Im pretty sure this debt would be classified as a unsecured debt.Also, I could be wrong but if you have already filed a bankruptcy then the lender foreclosed and there is a deficiency , the bankruptcy would prove you were insolvent.I think you only have 90 days after you first file.Again I could be wrong. a deficiency judgment should be discharged in a chapter 7 bankruptcy. You should file after you receive the judgment.Im pretty sure this debt would be classified as a unsecured debt.Also, I could be wrong but if you have already filed a bankruptcy then the lender foreclosed and there is a deficiency , the bankruptcy would prove you were insolvent.I think you only have 90 days after you first file.Again I could be wrong.
Lender must file for a deficiency action within six months of completion of foreclosure.
You can avoid the laws if your lender agrees not to press charges for deficiency. You can also file for a chapter 7 bankruptcy.
It will depend on the contract and conventions where the foreclosure took place. In many states where homes loans are secured by a trust deed the lender can only force the sale of the house and there is no possibility of a deficiency judgment when the sale was a trustee sale. If you really want to know have a lawyer in your state review your contract and default action the lender has filed. Lenders can file for a judicial action which can include a deficiency judgment if they believe there was mortgage fraud and the borrowers has assets.
In general, any lender can file suit, be granted a judgment, and have the judgment enforced. So the short answer is yes. Some also claim they can file criminal charges for a "bad check(s)." This is not true. The actions that can be taken depend on the laws of the state in which the person resides.
If the vehicle is repossessed the borrower will be responsible for the deficiency between the sale of the vehicle and the balance of the loan. If an equitable payment agreement cannot be reached by the lender and borrower, the lender can file a lawsuit for monies owed and if successful execute the judgment against any non exempt property belonging to the debtor.
You don't file a judgment you file a lawsuit against a company. A judgment is what you get if you win the legal battle.
I found the answer to my own question as I contacted an attorney in my area...For those of you who would want to know the answer is NO. A lender or collection agency is not able to take your yearly income tax return if you have a deficiency from a vehicle repossession. The only thing they can do regarding your taxes is file a 1099 form if they chose to forgive the debt which would mandate that you report the amount as income on your tax return to which you pay taxes against it.They can however file a judgment against you and in some states can garnish your wages but that varies.Hope this helps.
You don't. The Court would file the judgment if it is granted.
J. Deficiency Judgment The foreclosure sale may not produce enough cash to pay the loan balance in full, after deducting expenses and accrued unpaid interest. In this case, the lender may be entitled to a personal judgment against the borrower for the unpaid balance. The lender is not required to seek a deficiency judgment and most commercial and residential lenders in Georgia do not seek deficiencies; however, it is allowed. Deficiency may also be obtained against any endorsers or guarantors of the note and against any owners of the mortgaged property who assumed the debt by written agreement. If any money remains from the foreclosure sale after paying the debt and other liens, such as the second mortgage or any mechanic's liens, expenses and interest, these proceeds are paid to the borrower. If the lender seeks a deficiency judgment in Georgia, the lender must file for a deficiency within thirty (30) days of the foreclosure sale and follow the procedures outlined in OCGA § 44-14-161, or the claim for a deficiency is barred. The foreclosure sale must be confirmed and the deficiency judgment must be approved by a judge of the Superior Court in the county in which the sale occurred. The above answer is correct, literally...but it overlooks one major item: GA laws respecting the note vs mortgage. The "note" (which is the contractual loan obligation) is separate from the "mortgage" on the property. Both are legal instruments. Thus, a lender in Georgia could get around the requirements of judicial confirmation by first filing a lawsuit for breach of contract under the "note." This is strict and is easily determined (e.g., you miss one payment). If the note contains an acceleration clause (it will), then once you miss a payment the entire loan becomes due. The lender can easily obtain a judgment on that breach, as a result, for the full amount of the loan. This becomes a judgment lien that the debtor owes to the lender. The lender can then (separately) foreclose on the mortgage. Under the power of sale, the lender will sell the property at public auction (per the rules). If the foreclosure does not net the full amount of the mortgage, then the lender must seek a judicial confirmation in order to collect on the deficiency...but wait...what about the judgment lien from the lawsuit under the note? The lender DOES NOT need to confirm that... As such, the proceeds from the foreclosure can be applied to the judgment lien but the lender does not need to seek confirmation to collect on the deficiency under the judgment lien (lawsuit under the note). For example: X takes out a loan from Y for 100K to buy a house. Y obtains a mortgage to secure and a signed note for 100K from X. Later, X misses a payment and Y sues under the note, obtaining a judgment for 100K (the value of the note/loan). After obtaining that judgment, Y forecloses on the property and sells it at public auction (per law). Since property values are down, Y is the only bidder. Y bids 1K for the property and is the highest bidder (even though the property is worth 70K now). Y does not seek to confirm the sale but instead applies the 1K to the 100K judgment lien and pursues X for 99K difference. Y will win under Georgia law. Thus, Y gets a 99K judgment against X (Y can pursue in court or sheriff's sale etc) and gets a 70K piece of land for 1K. In all, Y could potentially pull in 169K from the 100K loan because Y did not have to confirm the 1K foreclosure sale in order to collect under the judgment lien (from the note). X gets a 99K judgment against him/her, zero property, and some legal fees...ya think GA nees to change its laws?
Pursuant to Nevada Revised Statutes 40.451, Nevada is a deficiency state, which means that the lender may sue a homeowner after foreclosure for the amount the house sold that was less than what was owed. The homeowner will then have to pay the lender any amount that was due on the loan that was not paid off at sale. For example, if a home was purchased in 2006 for $400,000 and in 2009 it appraises for $300,000, and the homeowner cannot afford the mortgage and allows the lender to foreclose, and at the foreclosure sale the house sells for $200,000, the lender may file a lawsuit against the homeowner (known as a deficiency law suit according to statute). The deficiency law suit must be filed within six (6) months after the foreclosure sale, and the amount of the deficiency judgment is determined by a statutory formula. An appraisal is obtained to determine the actual fair market value on the date of sale. The homeowner is given a credit for the appraised value, or the sales price, whichever is greater. In the above example, even though the house only sold for $200,000, the homeowner is given credit for $300,000, therefore the deficiency judgment (the amount owed to the bank) is $100,000 - the difference between the amount owed and the market value, not the actual sales price.
You must file a lawsuit in the proper court and obtain a judgment in your favor. You can then request a judgment lien from the court.You must file a lawsuit in the proper court and obtain a judgment in your favor. You can then request a judgment lien from the court.You must file a lawsuit in the proper court and obtain a judgment in your favor. You can then request a judgment lien from the court.You must file a lawsuit in the proper court and obtain a judgment in your favor. You can then request a judgment lien from the court.
If there is a judgment AGAINST you for fraud, then NO, such a judgment WILL NOT be discharged.
Yes. The lender can file a lawsuit in the debtor's state and if awarded a judgment can execute it as a wage garnishment.
Yes you do. You can file for bankruptcy and may be afforded some consolation, but by law you are responsible for the difference between what was owed and what the lender was able to wholesale the car for.
It depends on the jurisdiction. The lender needs to file a deed of trust or a mortgage to protect its security interest in the property.It depends on the jurisdiction. The lender needs to file a deed of trust or a mortgage to protect its security interest in the property.It depends on the jurisdiction. The lender needs to file a deed of trust or a mortgage to protect its security interest in the property.It depends on the jurisdiction. The lender needs to file a deed of trust or a mortgage to protect its security interest in the property.
After the sale of the vehicle if there is a difficency balance the lender can file a judgment for the difference. Depending on the jurisdiction of the judgment the process used to try to collect on the judgment varies. First you must determine what assets the person has if any, and then that will determine your course of action. If the person has no assets then you're just wasting time and money although they may obtain assets in the future. In some jurisdictions you must renew a lien or judgment every two years.
Both a foreclosure and a short sale will ruin your credit for many years. With a foreclosure, it's best to file a Chapter 7 bankruptcy to protect you from the lender. The lender has up to 10 years to come after you for the loan deficiency. For example, if you owed $200,00 on a mortgage, and it cost the lender $75,000 to re-sell your property, you could be liable for that $75,000 deficiency. On a short sale, the lender can still come after you, but the amount that is short can be issued to you on a 1099 as a "loan forgiveness" causing you to pay income tax on that money.
Proposed counter-judgment, how do you file one?
Yes, it is called bankruptcy. Move quickly though. If the lender obtains a judgment against you before you file bankruptcy, you will still owe on the loan.
If the mortgage is in both names, or if there is significant joint debt, you are better off filing bankruptcy jointly before the divorce is final. If the mortgage company forgives the balance, it will count as income to you and you will have to pay taxes on it in the following year, unless you file bankruptcy. Or the mortgage company can sue on the deficiency and get a judgment good for 10 or 20 years. Unless you file bankruptcy.
There are no legal differences between the borrower voluntarily relinquishing a vehicle or the lender having to initiate repossession action (with perhaps the exception of additional monetary charges). If an outstanding balance remains on the original loan amount after the vehicle is sold at public auction the lender can file suit to gain a judgment against the borrower for the amount still owed. If a judgment is awarded the judgment creditor may execute it according to the laws of the state. This being the case it is possible for a judgment holder to place a lien against real property owned by the judgment debtor.
Yes you do as a nonresident of Indiana if you if the must file a tax return requirements for Indiana. Go to the Indiana state tax department to find the filing requirements.
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