Am I Liable For A Deficiency Judgment After A Short-Sale?

The longer a foreclosure lawsuit takes, the more the bank may be willing to come to the negotiating table and offer the borrowers are beneficial solution. Few homeowners utilize the courts effectively and even attend the initial hearing for fear of being thrown into a mythical debtors prison or publicly humiliated, let alone defend the bank’s efforts to take their property. But a few simple motions, filed in accordance with the applicable rules of procedure, will put lenders on notice that homeowners will not go down without a fight. These companies are one of the greatest perpetrators of abuse and fraud against homeowners, as they have very little incentive to do right by the borrowers. These companies are typically paid a flat fee by the trustees of the mortgage to administer the loan, collect payments, make sure property taxes and insurance are in place and paid through escrow, and pursue any foreclosure proceedings, if necessary. If homeowners do miss payments, the servicer gets paid anyway, and actually makes more money from a foreclosure than if they offered to work closer with the owners of the property to negotiate for a mortgage modification or other workout option.

Once the extra time has expired, however, the homeowners better have filed their answer, if they hope to utilize the government courts to stop foreclosure for good. If the answer if filed after this date, it will probably be thrown out and a default judgment awarded in favor of the lender. Thus, if a Motion for Extension of Time is filed, borrowers must use that time to put together their thoughts and answer the complaint. This way you do not stand alone and you have the basic arsenal to enter into negotiations with the adverse party. Third, your chances of settling into a compromise to your advantage are increased if banks know that you are not aware of your rights and the proceedings. Thus, it is imperative to have a Massachusetts foreclosure attorney to guide your course of action and to represent the case on your behalf. The first is if a government agency is the foreclosing mortgagee. The second situation in which homeowners may be able to assert due process protections is if the state foreclosure laws require that a government official participate in the process.

A mortgage calculator which specializes in foreclosure loss helps you to decide when the time is right for starting action against the homeowners. It is only after the buyers have paid on the contract for the required period of time that they are granted full ownership rights. The buyers, though, have more responsibility than with a rental agreement, and also more ownership rights. In the typical contract for deed, the buyer is viewed as the equitable owner of the property, is given full possession, and is required to maintain the house. However, as in almost all real estate related issues, the exact function and treatment of these types of contracts depend heavily on the state laws and how detailed the statute are in regards to them. Some states have extremely detailed treatments of land sale contracts, regulating how they are to be terminated, forfeited, or foreclosed in the event of a default.

If the requirements are not met, the foreclosure can not go forward. If owners can’t save their home during the pre-foreclosure process, they’ll lose their home in foreclosure. The bank will then auction these foreclosed properties quick to get their money back. In many cases, people buy these auctioned homes, but in many more cases, no one buys these homes and the bank is stuck owning them. Once you make an offer to purchase, banks generally present a “counter-offer.” It may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible. You should plan to counter the counter-offer. Your offer or counter-offer will probably have to be reviewed and approved by several individuals and companies. These might include extending your repayment period, suspending payments for a few months, or tacking the missed payments onto the back end of the loan. You may also want to talk about extending the contract with your lender. Lets say you have a 30-year fixed rate loan, perhaps you can change it to a 40-year loan.

Sometimes it helps to do some rearranging of items and eliminate some furniture to create more space. It is very important to get rid of clutter. Less is more when it comes time for buyer to view your home. Foreclosure Network, an organization of mortgage firms, this includes states such as Florida, New York and Texas. Luckily they do not allow ‘deficiency judgments’ in California and Arizona. Other states that prohibit these judgments include Wisconsin, South Carolina, Washington, Pennsylvania, Oregon, N. Nonjudicial Foreclosure – Violation Of Borrowers’ Due Process Rights? In states that allow a nonjudicial foreclosure through a power of sale clause in a deed of trust, homeowners find that their properties are sold out from under them without a hearing or chance to defend themselves. In fact, it is up to the borrowers to bring a lawsuit into court against the lender and they then have the burden of proof in showing that the foreclosure should not go forward. Another option for some homeowners is bankruptcy.