Re: Deficiency judgement changes Texas MUST READ
Posted by Jackie on October 21, 2004 at 17:28:55:
In Reply to: Deficiency judgement changes Texas MUST READ posted by blake on September 10, 2004 at 14:00:52:
: In Texas it is illegal to ever have a deficiency judgement filed against you if you follow the letter of the law. : Example:: Jim has a house with a market value of 100,000.: he owes 85,000.00 House is sold a foreclosure sale for 70,000. Per Texas law the bank cannot sue for a deficency as the house was sold under market value.: Example two:: Jim house has a market value of 100,000: he owes 105,000. Forslosure sale of 70,000 Bank can sue for 5,000 amount over market value : Here is the staute read for yourself: Added by Acts 2003, 78th Leg., ch. 554, § 1, eff. Jan. 1, 2004.
: : § 51.003. DEFICIENCY[0] JUDGMENT. (a) If the price at : which real property is sold at a foreclosure sale under Section : 51.002 is less than the unpaid balance of the indebtedness secured : by the real property, resulting in a deficiency[0], any action brought : to recover the deficiency[0] must be brought within two years of the : foreclosure sale and is governed by this section.: (b) Any person against whom such a recovery is sought by : motion may request that the court in which the action is pending : determine the fair market value of the real property as of the date : of the foreclosure sale. The fair market value shall be determined : by the finder of fact after the introduction by the parties of : competent evidence of the value. Competent evidence of value may : include, but is not limited to, the following: (1) expert opinion : testimony; (2) comparable sales; (3) anticipated marketing time : and holding costs; (4) cost of sale; and (5) the necessity and : amount of any discount to be applied to the future sales price or : the cashflow generated by the property to arrive at a current fair : market value.: (c) If the court determines that the fair market value is : greater than the sale price of the real property at the foreclosure : sale, the persons against whom recovery of the deficiency[0] is sought : are entitled to an offset against the deficiency[0] in the amount by : which the fair market value, less the amount of any claim, : indebtedness, or obligation of any kind that is secured by a lien or : encumbrance on the real property that was not extinguished by the : foreclosure, exceeds the sale price. If no party requests the : determination of fair market value or if such a request is made and : no competent evidence of fair market value is introduced, the sale : price at the foreclosure sale shall be used to compute the : deficiency[0].: (d) Any money received by a lender from a private mortgage : guaranty insurer shall be credited to the account of the borrower : prior to the lender bringing an action at law for any deficiency[0] : owed by the borrower. Notwithstanding the foregoing, the credit : required by this subsection shall not apply to the exercise by a : private mortgage guaranty insurer of its subrogation rights against : a borrower or other person liable for any deficiency[0].
How does this law relate to vehicle sales.
