Foreclosure Deficiency Attorney
What is a foreclosure deficiency?
The downward spiral of home values during the Great Recession left many homeowners “upside down” for the first time in history. They owed more on their property than it was worth. When banks foreclosed on such homes, the home would sell for less than the amount owed, resulting in a deficiency still owed to the lender.
Many people assume that California is an anti-deficiency state, meaning lenders cannot collect on a deficiency after foreclosure. This is untrue. There are several code provisions that govern when a bank may pursue collection on a deficiency post-foreclosure. It is important to seek experienced legal counsel to determine whether your lender is entitled to the deficiency in your case.
What happens when a lender asks for a deficiency judgment?
If you lender is entitled to a deficiency, then your lender can sue you in an effort to recover on the deficiency. If the lender wins in court, then the lender will be awarded a deficiency judgment. This judgment operates like any other judgment – lenders can use it to garnish wages, swipe funds from bank accounts, or lien property. On top of that, judgments typically carry interest, which means the debt will increase over time unless paid.
In this situation, the most important thing you can do is seek experienced legal counsel.
- At McCarthy Law PLC, our practice is based on helping people who are facing difficult debt problems.
- Our lawyers have the experience to explain the facts and your options.
- Your attorney can work with you and your banker to come to a settlement that both sides can live with.
Give us a call today at (855) 976-5777 or contact us now for a free consultation.