eyeball Posted January 27, 2008 Report Share Posted January 27, 2008 What happens if you just leave and go out of state? What does the bank do? Do they sue yo and find you and put a judgement against you? Or do they just sell the house and leave you alone? Link to comment Share on other sites More sharing options...
kb9tbq Posted January 27, 2008 Report Share Posted January 27, 2008 I went through foreclosure and stayed in the house up to the point that they gave me a date to move out. I know I have a foreclosure on my credit report but they didn't do anything further then that in my case. I am on disability and my income is exempt from garnishment.I am guessing that they re-sold the house. I could not get it sold in time. Link to comment Share on other sites More sharing options...
jq26 Posted January 27, 2008 Report Share Posted January 27, 2008 Like most lawsuits, it depends if it is worth their time. They have a right to collect the deficiency. And they could easily get a judgment (there are state statutory requirements for post-foreclosure recovery). But just the document is worthless if they can't recover. You'd be better off facing up to it and discussing it with the bank if it is you that is slipping on payments for some reason. Banks do not want to foreclose, sell, and then chase you down for the difference. Especially in the current environment. Link to comment Share on other sites More sharing options...
unusualsuspect Posted January 28, 2008 Report Share Posted January 28, 2008 In California, the foreclosure process is quite long... you basically get 6 months from the day you last pay your mortgage before you get kicked out...As far as deficiencies, if its a purchase money mortgage, then there's nothing a lender can do. They eat the loss.If you refi'ed, then the lender can suer for a deficiency. Link to comment Share on other sites More sharing options...
jq26 Posted January 28, 2008 Report Share Posted January 28, 2008 Regarding purchase money loans, I think that is only in California. They have an anti-deficiency statute that is very consumer friendly. Not so sure about the the majority of states. No lender is going to willingly give a residential non-recourse loan. I know when I signed for a residential purchase money loan in April, I signed that I am personally liable for any deficiency, including cost of recovery and foreclosure fees. Standard lender legal protection. Most states you are on the hook for the full balance and then some. Link to comment Share on other sites More sharing options...
flacorps Posted January 28, 2008 Report Share Posted January 28, 2008 As far as deficiencies, if its a purchase money mortgage, then there's nothing a lender can do. They eat the loss.This may not be the case in some states. Your mileage may vary. But in many states if it's a primary residence the lender must invoke a further proceeding in order to plead and prove a deficiency. In many cases it's not done as a matter of course, but if the lender was way upside down and had a debtor who was clearly otherwise solvent, the lender might choose to do it. I imagine it'll be getting more common. Link to comment Share on other sites More sharing options...
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