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Can there be a deficiency judgment on a refinanced mortgage in California?
Wiki User
∙ 14y ago
It depends on the loan. California has a "one-action, property first" rule which means a lender can only do one thing to take action against you and that action must first be against the property. Lenders reserve the one action for foreclosure, and 99% of CA foreclosures are "right of sale" foreclosures which means they force the sale of the home instead of taking you to court. Once a first mortgage lender forces the sale (auction) they have done all they can do to you. They can't sue you for deficiency or send you to collections. They will issue a 1099 for the amount of debt that was written off but most people easily file as insolvent on their taxes to avoid paying on this amount as income. Now, lets say you also have a second mortgage. If you have equity in the home a delinquent 2nd can also foreclose on you, but lets assume you don't have equity (you did say California right?). The second mortgage can't really do anything to you until the first mortgage company takes the house for 2 reasons: 1)There is no equity for them to recover anything. If they foreclose they loose the loan plus the foreclosure fees. It's cheaper to do nothing. 2)Remember the property first rule? They can't sue or do anthing else until they act against the property, which #1 says they won't do. Now let's say your first mortgage forecloses. Now you could be in trouble. The second is free to come after you. Depending on the circumstances and how sure they are that you have income they can come after, they may decide to sue you for a judgment and attach a wage garnishment. There is no way to know for sure if they will do this or not. Many people file for bankruptcy protection after a foreclosure which makes suing you pointless if you are approved for the protection.
Wiki User
∙ 14y ago
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How do you remove the co signer on the mortgage?
The mortgage must be paid off and refinanced without the co-signer.The mortgage must be paid off and refinanced without the co-signer.The mortgage must be paid off and refinanced without the co-signer.The mortgage must be paid off and refinanced without the co-signer.
Does the state of Illinois allow mortgage companies to sue for a deficiency judgment after the foreclosure?
yes
Is California a non recourse debt state?
California is a non recourse state for your first mortgage. Be aware any form of second mortgage you will still be liable for.You may also be liable on the first mortgage if you have refinanced your original purchase mortgage.
What happens after a judgment of foreclosure on a mortgage?
In very broad terms, the judgment creditor can apply to the court for a writ of sale and have the sheriff sell the property at a public auction. The exact time line will vary by state and will depend on whether or not you are entitled to a deficiency judgment. For example, California has two different time lines. If a deficiency judgment is not available or the creditor waives the right to get a deficiency judgment, then the sheriff gives 120 days notice of levy and 20 days notice of sale. if there is the right to have a deficiency judgment, the sale occurs after 30 days but the owner has a 90-day right of redemption.
What is the procedure to sue to be released from a mortgage as a cosigner?
There is no procedure for this. The mortgage must be refinanced.
Do anti deficiency laws pertain to refinanced first mortgages?
According to the Anti Deficiency laws, anti deficiency laws applies to the refinanced first mortgage as long as the property is used as a primary residence of the purchaser.
How do you know if you would get a deficiency judgment on your forclosure. Do they go after pension or social security?
Can there be a deficiency judgment on a mortgage forclosure in virginia?
Does the state of Illinois allow mortgage companies to sue for a deficiency judgment after the foreclosure?
yes
How do you remove the co signer on the mortgage?
The mortgage must be paid off and refinanced without the co-signer.The mortgage must be paid off and refinanced without the co-signer.The mortgage must be paid off and refinanced without the co-signer.The mortgage must be paid off and refinanced without the co-signer.
What is a deficiency judgment?
A deficiency judgment is where the owner of a mortgage or deed of trust is awarded a judgment against the borrower in the amount of: the amount of money owed in the mortgage or deed of trust minus the amount of money the property sold for at foreclosure sale If the above amount is a positive number, some states allow the lender to get a judgment for that amount.
Can the private mortgage insurer sue the homeowner for the deficiency it pays to the lender after a foreclosure?
Yes, the private mortgage insurer can sue the homeowner for the deficiency. They can get a judgment against the home owner for the difference.
Is California a non recourse debt state?
California is a non recourse state for your first mortgage. Be aware any form of second mortgage you will still be liable for.You may also be liable on the first mortgage if you have refinanced your original purchase mortgage.
How can a cosigner be completely removed from a mortgage?
The mortgage must be paid off and refinanced in a single borrower's name if necessary.The mortgage must be paid off and refinanced in a single borrower's name if necessary.The mortgage must be paid off and refinanced in a single borrower's name if necessary.The mortgage must be paid off and refinanced in a single borrower's name if necessary.
Can there be a deficiency judgment on a mortgage foreclosure in West Virginia?
No, adeficiency judgment may not be obtained when a property in foreclosure is sold at a public sale for less than the loan amount that the underlying mortgage secures.
What happens after a judgment of foreclosure on a mortgage?
In very broad terms, the judgment creditor can apply to the court for a writ of sale and have the sheriff sell the property at a public auction. The exact time line will vary by state and will depend on whether or not you are entitled to a deficiency judgment. For example, California has two different time lines. If a deficiency judgment is not available or the creditor waives the right to get a deficiency judgment, then the sheriff gives 120 days notice of levy and 20 days notice of sale. if there is the right to have a deficiency judgment, the sale occurs after 30 days but the owner has a 90-day right of redemption.
What is the procedure to sue to be released from a mortgage as a cosigner?
There is no procedure for this. The mortgage must be refinanced.
Where can one have their mortgage refinanced?
A mortgage can be refinanced in the Bank branch where the mortgage was taken up. Another solution is through the internet and popular bank branches are able to notify you of the process through email.
