Re: Foreclosure


Posted by Julio Martinez-Clark on December 20, 2007 at 09:08:11:


In Reply to: Foreclosure
Posted by Tee on December 20, 2007 at 06:55:48:

Hi Tee,

Yes, lenders have a period of three (3) years to file for a deficiency
judgment, but it is limited to the balance of the loan in default after the
foreclosure sale proceeds have been applied. See the link below.

In my experience deficiency judgments are not that common. Lenders
are mostly concerned about getting your property sold to get most of
their money back, and then writing off of their taxes any
loss/deficiency. They will give you a 1099 after they write the
loss/deficiency. See this article in the NY Times: After Foreclosure, a Big
Tax Bill From the I.R.S. - www.nytimes.com/2007/08/20/business/20taxes.html?
_r=1&oref=slogin

Pursuing deficiency judgments is an arduous business for banks. They;d
have to spend large sums of dollars in attorney's fees to try to get
assets from insolvent homeowners. It's just not worth it.

I hope this helps. You can take a look at more information on
foreclosures at a page that I've created at www.Beat-Debt-
Collectors.com

Julio Martinez-Clark




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