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deficiency judgements accross state lines

by foreclosureuniversity ⌂ @, Tuesday, May 18, 2010, 17:43 (3013 days ago) @ bhboots15

� Our home in Florida might be foreclosed on. Can they get a deficiency
� judgement on our paid for home in Arizona>

Yes, they can file a deficiency judgment against you for the amount that was lost. Very rarely does this ever happen because it just doesn't make sense for the bank. Although they would like to scare you into believing they will file, it's just not that common, but it can happen and when it does it's usually the 2nd mortgage, who gets wiped out, that files the judgment. Most of the time homeowners or investors are able to work out some sort of payment plan or settlement for less so then you don't have to worry about the judgment. All you have to worry about is the 1099. However because of the Mortgage Forgiveness Debt Relief Act, most homeowners don't have to worry about the loss counting as income and most people in this situation can claim insolvency so 1099 is usually not an issue either any more.

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Good Luck
ForeclosureUniversity.com


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