Question: is Michigan an anti-deficiency state?
Foreclosure University – The Ultimate Investor Resource
Rental property in WA and am in military in NC presently.
Question: I have property in WA, currently it is a rental property since I am in the military and am in NC presently. Being that I cannot come close to renting the house for what I pay in mortgage, I am facing letting the house go. Trying to find out all the ramifications of foreclosure.
Answer: – Well, the bank will either 1099 you for the difference if they are not able to collect what is owed, or they will file a deficiency judgment against you for the amount they lost. Ideally, you are hoping for a 1099-c because in most cases you can counteract the 1099-c if it’s your primary residence or you are insolvent.
My home in South Carolina is facing foreclosure, can they garnish my wages?
Question: My home in South Carolina is facing foreclosure, I live and work in Fl now. If my home forecloses and they file a deficiency judgment, if I don’t have the money, can they garnish my wages?
Answer: – If your home in South Carolina forecloses and they file a judgment against you, yes they can garnish wages.
short-sale, foreclosure, or bankruptcy… what should I do?
Question: Looking at short-sale, foreclosure, or bankruptcy… only is Social Security Disability, VA Disability (100%), and disability insurance monthly payment… what should I do? can they come after any of my income in a deficiency judgement? will they even come after me? how will bankruptcy affect me… I currently have NO assets at all except for about 15,000 dollars in savings. thanks Tom from FLORIDA
Answer: -Tom, I have to make the assumption that you’re planning on or you’ve already stopped making payments on your home or you wouldn’t be asking these questions. A short sale in my opinion is by far the best option if you can’t sell your home for what’s owed, rent it out or can’t work out something with the bank like a forbearance or loan modification. A short sale will affect your credit but will eliminate a foreclosure on it. If done properly will also eliminate the possibility of a deficiency judgment. If a short sale is not accepted an ultimately your home ends up at the foreclosure auction, then you will either receive a 1099 or they will file a deficiency judgment against you. If they file a deficiency judgment and you can’t pay, they can garnish wages. Depending on the amount of the judgment, this forces most people to file bankruptcy to eliminate the judgment.
Buying our first home that is in foreclosure, why is it taking so long?
Question: My husband and I are in the process of buying our first home and we are very confused as to what is going on and no one can help us. Here’s the situation…We put in an offer on a house and the offer was accepted after negotiations. Within 2 months the house went into a short sale because the owners did not have the money. Since then (it’s been 6 months) Bank of America has reappraised the home and put it into foreclosure (or so I’m told). Our real estate agent said that they can get the foreclosure postponed…What does this mean? Can they foreclose on a house that has an offer on it? Would this mean that the contract is no longer valid? I would appreciate any help you can give us. Thanks!
Answer: – It sounds like you made an offer to the bank for less than what is owed on the property, which is a short sale. And from what you say, the bank accepted the offer but there may have been some other requirements from the initial seller in order to get everything approved. As a buyer, it’s not uncommon to wait for MONTHS and if you are patient enough it could even be a year or more before you are able to buy a property in foreclosure. This is all because of bankruptcies, settling with 2nd and 3rd lien holders, uncooperative sellers, etc. To answer your question, yes, the bank can foreclose on a property even if there is an offer because they are waiting for certain requirements to be met. Yes, they can postpone the foreclosure auction as long as the bank sees a legitimate reason to postpone. Don’t give up. Keep working close with your agent, I’m sure they are on top of the situation…Just don’t be surprised in you have to wait awhile. Most home buyers get frustrated waiting and move on to another home. Good Luck
FILING BANKRUPTCY TO PROTECT FROM DEFICIENCY JUDGMENT
Question: CAN FILING BANKRUPTCY PROTECT YOU FROM A DEFICIENCY JUDGMENT?
Answer: -YES… for most people who go through a hardship like foreclosure, the main reason they file bankruptcy is because a judgment was filed against them. And since they are not in a position to pay off their mortgage amounts, bankruptcy was their only option unless they wanted their wages garnished. Bankruptcy can protect you from a deficiency judgment and that deficient mortgage amount would be included in the bankruptcy.
On a side note, most people do wait to file bankruptcy until after foreclosure because lenders don’t necessarily have to file a judgment against the homeowner. They can issue a 1099 which means the mortgage amount they forgave is considered as taxable income and they give up their rights to come after you for the deficient amount. I would recommend you seek counsel from a professional bankruptcy attorney so you know all your options. Good Luck