WHAT HAPPENS IF MY HOME IS SOLD AT JUDICIAL SALE FOR LESS THAN MY MORTGAGE BALANCE?
Often times, homes in foreclosure sell for less than the balance of the mortgage at a judicial sale. Homeowners are surprised to learn that when this happens, the lender can sue them for the remaining amount owed. This process is called a deficiency judgment. Lenders can sue for a deficiency judgment at any point during the foreclosure process -- before or after the judicial sale.
Even though a lender may have the right to go after you for a deficiency judgment, it might decide not to do so— for homeowners with few assets and resources, the lender may decide that the expense and effort of obtaining a deficiency judgment is simply not worth it. Nonetheless, the lender could still sell your deficiency debt to a debt buyer, who in turn could file a lawsuit against you for the deficiency later on. For this reason, if you find yourself in a situation where there is a deficiency, it's important to have an aggressive and competent attorney in your corner. A skilled attorney can help negotiate an agreement with the lender to not pursue a deficiency judgment.
If you are facing a deficiency, don't be dismayed by the enormity of the situation. You have rights, but you need to assert and defend them. At The Law Center, we are a team of specialists that are passionate about foreclosure defense and helping homeowners at the highest level. It’s your home, let The Law Center help you defend it.
Call us now and speak with a foreclosure expert on how you can make the foreclosure process work for you -- not against you. (312) 600-8815