After a foreclosure is there always a deficiency judgment?
Question:
Answer:
In my experience, pursuing a deficiency judgment is almost always a waste of the lender's time, and they do not bother.
They usually know that the former owners went into foreclosure because they could no longer afford the mortgage, and do not have the money to pay back the arrears. Many homeowners facing foreclosure have also defaulted on numerous other debts, such as credit card, car loans, etc., and banks know that adding one more judgment to the consumer's credit report won't result in the debt ever being paid.
It's really just not worth the time for banks to chase after money that isn't there. Especially when they can make back the loss on the loan by selling the property in the open market and originating or purchasing new loans.
ForeclosureFish
http://www.foreclosurefish.com/...
No, they don't always do it. But can't guarantee they won't.
More Related Questions & Answers...