What happens after foreclosure if money still owed.?

Question:

Having never been through foreclosure myself, I don't know what advice to give a friend who is down on his luck and is facing foreclosure. He got behind on his house payment, and cannot catch it up. He is worried that the house won't sell for enough to pay off the mortgage, leaving about a $10,000 balance. He started a new job but realizes he must downsize due to earning less money. What will happen in this situation? Will they end up garnishing his wages where he could end up losing his job, or will mortgage company work out payments. Facts related to this are: the company is C.I.T., and the State of legal residence is Oklahoma. Wish he had internet like me.

Answer:
He will probably be sued for the balance, and his paychecks garnished to pay the judgement. If he couldn't make his mortgage, there's no way they'll take payments on the balance.

He will be responsible for any money that is owed if the sale of the house does not bring enough to pay of the loan. In Oklahoma they can garnish wages if they choose to go that route if the payments are not being made on a timely schedule. And garnished payments is a payment plan.

Please. Wage garnishment is the last step in the process. First the lender will file what is called a deficiency judgment, which will tie up the former owner's credit. The judgment will show up on any name search made by any serious lender or creditor. The underpaid lender must then decide if it is worth 'perfecting the lien'--that is, going after the former to get the rest of the money. If possible the current assets will be seized by court order, or the lender may appeal for wage garnishment if there are no liquid assets. If the lender 'flips' the property and reclaims the original balance of the loan, he may decide it is not worth the expense to collect from the defaulter. Quicky lenders are more likely to pursue and garnish, since they tend to lend on a shoestring. Check with an asset law firm that does financial evaluations for free. They will know the state's current laws governing foreclosure. B.

If the house doesn't sell at sheriff sale for the amount that is owed, the lender is able to sue the former owners for a deficiency judgment. The deficiency judgment is usually the difference between the sales prices and the amount that was owed on the loan, plus the regular costs of suing someone.

However, banks almost never sue their former clients for a deficiency judgment. In all of the time I've been working with homeowners in foreclosure, no bank has ever sued the homeowners if they lost the house.

This is because it is simply not worth the extra time and effort for the bank to sue you when they know that you went into foreclosure because you did not have any money. Having an extra judgment against you won't get them any more money, and it will only cost them more to proceed with the legal process.

So it can be a danger in your state, but banks rarely sue for this reason. The very circumstances that led you into foreclosure actually protect you from being sued for even more money.

Good luck.

ForeclosureFish
http://www.foreclosurefish.com/...

It's a possibility that he will have his wages garnished but a lot of lenders don't want to go that route -- it'll cost more than $10,000 just to start that process.

here is a good article about what is the effects of foreclosure t life.
http://www.badcreditresources.com/articl...
I hope this will be helpful for you.

What happens after foreclosure if money still owed.?

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