ARe banks actively pursuing deficiency judgments on foreclosures in the state of Michigan right now?
Question:
Answer:
Banks almost never pursue deficiency judgments against former homeowners. They know that there is very little chance they will be able to collect the judgment, and filing another lawsuit against you will cost them even more money. It makes more sense for the mortgage company to cut its losses and give up trying to get more money out of you.
Most lenders know that homeowners face foreclosure because they run into a situation where they run out of money or lose income. Filing another judgment against a person in that situation won't get them anything, so there's no reason to spend the time and money on another lawsuit.
I haven't heard of this changing in Michigan or anywhere else right now. Especially as banks are losing more and more on foreclosure properties, it doesn't make sense for them to spend more resources chasing after money that you don't have.
Hope that answers your question.
ForeclosureFish
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