How Can We Find Out If A Foreclosure Of Our Home Will Have A Deficiency Judgment?

To compound upon how hard foreclosure can be for most people, in some cases foreclosure is not the end of it. Sometimes, the creditor is able to get a deficiency judgment, which says that at some point in the future, the debtor will have to pay back the difference between the value of their liquidated assets and how much they owed. For everything that foreclosure and even bankruptcy can do, sometimes it is not enough, and a deficiency judgment will follow.

The largest factor in whether or not you will have to pay a deficiency judgment is whether your home and other assets are enough to cover your debt. If so, then you have absolutely no problem. However, if not, then you are in danger. Furthermore, sometimes it will not just be the amount of the deficiency that you have to pay, meaning the difference between your amount owed and asset value, but also, sometimes the court will award the bank in the amount of the legal fees and other fines as well. And these amounts really rack up. Therefore, even if you have no other option, foreclosure is still a bad idea.

If you think that your lender may pursue a deficiency judgment, you should hire the services of a stop foreclosure or foreclosure assistance service as soon as possible. These services can help you with everything in the process, from declaration of foreclosure to the home sale, and can really help you. The biggest hint that your lender may pursue this comes when they ask you to fill out a net worth statement. If your net worth is not enough, then you know that they will probably contact the IRS to get such a judgment.

However, it is normally best to get the services of a foreclosure assistant before then, as they will be able to help you with much of the paperwork, and may be able to help you adjust how your net worth will appear ahead of time. What you have to lose is just too much to not get the help of these experts as soon as possible.