In Michigan, deficiency judgments are allowed after a sheriff sale of a property in foreclosure.
If the mortgagee (usually the bank or investor that owns the mortgage) purchases the property at the public auction and sells for less than its fair market value, homeowners may be able to raise this as a defense to limit the size of the deficiency judgment.
Michigan foreclosure laws are discussed at the following section of the Michigan Code:
Mich. Comp. Laws sections 600.3101 to 600.3180, 600.3201 to 600.3280
Yes, a lender can file for a deficiency judgment in Indiana. The court has to approve the judgment in order to prosecute.
Can there be a deficiency judgment on a mortgage forclosure in virginia?
In Michigan, deficiency judgments can be used to garnish wages if a lender obtains a court order allowing them to do so. This means that if there is a foreclosure or repossession, and the sale of the property or asset does not cover the full amount owed, the lender can pursue a deficiency judgment to collect the remaining debt, including through wage garnishment.
Yes, it is.
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.
Yes
Yes, deficiency judgments are allowed in the state of Florida. When the lawsuit is filed, homeowners have the right to a jury trial to hear the deficiency case. Also, the bank must have in-hand service of the lawsuit paperwork on homeowners in order to include a deficiency judgment action in the original case.
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.
If the sellers sold the home for as much as they owed on the loan, there is no possibility for a deficiency judgment, since there is no deficiency. If the sale was through a short sale where the bank took less than it was owed but allowed the homeowners to sell and walk away, the bank would have to sue for the deficiency judgment.
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.
If there is an agreement and an applicable waiting period is not waived, a deficiency judgment may be obtained on a mortgage in Indiana. This means that deficiency judgments in the state of Indiana are allowed by state statute if it is authorized by loan documents and if borrowers do not waive applicable waiting period.
That depends on the state, and whether the financing was "non-recourse". The process you want to find out about is known as a "deficiency judgment".