0
If you filed bankruptcy and are now facing foreclosure can the bank get a personal deficiency against you?
Wiki User
∙ 14y ago
Yes, if the state and loan documents allow for a deficiency judgment, the bank can sue for one after the home has been sold at the sheriff sale and there is a deficiency.
If the homeowners are sued after the public auction and the bank gets a deficiency judgment, then bankruptcy can be used to discharge the judgment.
However, bankruptcy can not be used in advance before a deficiency judgment or other debt even exists to preclude its possibility.
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
Does Pennsylvania have an anti deficiency law?
No, you can have a judgment against you for a default.
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.
How can the homestead exemption help against foreclosure in a possible Chapter 13 dismissal?
The homestead exemption can protect your home equity in Chapter 13 bankruptcy from being used to pay off creditors. If the Chapter 13 case is dismissed, the homestead exemption may still provide some protection against foreclosure by allowing you to keep a certain amount of equity in your home. However, without the structure of the Chapter 13 repayment plan, you may still be at risk of foreclosure if you are unable to catch up on missed mortgage payments.
Is there some type of protection against paying a deficiency judgment under chapter 7 bankruptcy law if you filed chapter 7 before the foreclosure in Illinois?
If you reaffirmed the mortgage in the c. 7, which went to discharge and was closed, no, other than possibly filing a c. 13 to arrange to pay the amount due. If the mortgage company received relief from stay while you were in the c. 7, the deficiency was discharged with the other unsecured debts. If you had a bankruptcy lawyer, ask him or her.
What deficiency judgment laws in Maryland?
In Maryland, if a home is foreclosed on and the sale price does not cover the full amount owed, the lender can seek a deficiency judgment within three years of the foreclosure sale. However, there are various exemptions and limitations that may apply to protect homeowners from deficiency judgments in certain circumstances.
What happens after the foreclosure auction who has to pay the difference between the amount sold at the auction and the difference of the loan?
the lender can seek a deficiency judgment against the homeowner in court
Can a lender put a lien on your current house for the old house if the old house is foreclosed?
Yes. Most homes that go into foreclosure have liens against the owners.Yes. Most homes that go into foreclosure have liens against the owners.Yes. Most homes that go into foreclosure have liens against the owners.Yes. Most homes that go into foreclosure have liens against the owners.
Will filing for bankruptcy stop a forcloser Judgment against you?
If the judgment has not yet been granted by a court, it will stop the foreclosure. The mortgagee will have to file a motion for relief from stay to continue. If the judgment has been granted, it may stop the auction of the property. If the property has been sold, it will not have any effect. The answer can depend on your jurisdiction's laws regarding foreclosure, not on federal bankruptcy law, so consult a local bankruptcy attorney.
Papers were filed with court in Indiana to start foreclosure but then I filed bankruptcy can the lender get a dificiency judgment even if I turn the house over to them?
There are a number of issues to this question -- first the foreclosure lawsuit filed in the courts followed by the bankruptcy petition, and the turning over of the house to the lender and the possibility of a deficiency judgment. First of all, the foreclosure process that the bank initiated against the homeowners has been stopped by the bankruptcy filing, as long as it was a Chapter 13 bankruptcy and the mortgage was included. Filing a Chapter 7 to liquidate debts does not affect the status of the house loan, since it is a secured loan and can not be discharged through bankruptcy. The automatic stay of any collection efforts in a Chapter 13, however, puts all foreclosure proceedings on hold until the bankruptcy is dismissed. If the homeowners are able to complete the payment plan, they will have paid back the arrears on the mortgage and reinstate the loan, and the lender will not be able to sue for foreclosure any longer. Also, if the homeowners fall behind on the bankruptcy payments, the bank will most likely have the stay released and proceed with the foreclosure. In terms of giving the house back to the bank through a deed in lieu of foreclosure, this can not be done while the house is still locked up in the bankruptcy courts. Homeowners can begin to negotiate a deed in lieu with the lender, but they will not be able to transfer ownership to the mortgage company without voluntarily dismissing the bankruptcy. It is better to have this type of deal fully negotiated with the lender before releasing the stay. Once the deed is transferred back to the lender, there is no chance for a deficiency judgment against the homeowners. This is for a couple of reasons. First, the bank accepts the deed as payment in full of the mortgage loan, so there is actually no deficiency. The house is not auctioned off for less than the total amount owed -- the bank accepts ownership as payment in full. Second, the deed in lieu is a direct transfer of the property with no real money involved -- there is no transaction where the bank could claim they are owed more money. Unless the homeowners agree to pay more (which they should not have to do), the bank has no real claim to anything extra.
Is New Jersey a deficiency judgment state?
Deficiency Judgments Deficiency judgments are permitted in New Jersey. A lawsuit for a deficiency must be commenced within three months from the date of the foreclosure sale, or confirmation of the sale if confirmation was required. Although the deficiency suit is a separate lawsuit, it can only be brought against a person who was joined to the foreclosure lawsuit and who is personally responsible for the mortgage debt. Such a person must be served with the process. On a note that is dated on or after May 1,1980, the debtor may dispute the deficiency by introducing evidence of the fair market value of the mortgaged premises at the time of the foreclosure sale. The deficiency is limited to the difference between the fair market value of the premises and the balance due on the loan. However, a borrower should object to the foreclosure sale price prior to the confirmation of the sale. The failure to do so may set the borrower up for a larger deficiency. However, some New Jersey courts are refusing to confirm the foreclosure sale unless the lender agrees, as part of the confirmation, not to sue the borrower for a deficiency greater than the difference between the fair market value and the balance owed on the loan.
Are the banks now keeping foreclosed homeowners personal property?
Banks do not have any legal right to any personal belongings of homeowners in foreclosure cases. The loan is secured by the real estate, and the bank can only take back the real estate property. The only exception is a type of loan that banks occasionally make that includes both the real estate and personal property, but this personal property is listed and specifically detailed. It comes with the original transaction and is covered in the original loan. If a bank gets a deficiency judgment against homeowners, it may be able to seize some assets of the borrowers. However, these are somewhat rare cases, and the specific state foreclosure law procedures must be followed to obtain a deficiency judgment.
If you file chapter 7 bankruptcy and are discharged can a creditor later put a judgment against you for a mortgage on property you surrendered to them when you filed the bankruptcy?
No. The creditor can foreclose on the property (and virtually always do) since that is the way they get your name off of the deed and someone else's name on it. And, during this foreclosure, they will list you as a defendant since you are the property owner until the sheriff sale takes place. But, when the judgment is rendered in the foreclosure, it should be an "in rem" judgment, which means against the property only, and not an "in personam" judgment, which means against you personally. If they do get an in personam judgment against you, it is usually a good idea to notify the court and let them know about the bankruptcy so they remove the in personam judgment.
