Results 1 to 3 of 3
  1. #1
    Join Date
    Jan 2013
    Posts
    3

    Exclamation Can I Be Sued for a Deficiency After Foreclosure

    My question involves a mortgage in the state of: California

    Hi, I bought my home 4 years ago with a fixed 30-year FHA. I recently refinanced the house 6 months ago into another fixed 30-year FHA. If I were to walk away from this home so that I can move and rent a house in a different part of the state, can the lender actually sue me?

    I owe $290,000 and the home is "valued" at $285,000.. No, it won't sell because buyers want the house for $260,000..

  2. #2
    Join Date
    Jul 2012
    Posts
    479

    Default Re: Can I Be Sued for a Deficiency After Foreclosure

    CA is a non-recourse state, which means lender wouldn't be in a position to sue you (that said, I presume no part of any refinance involved money that wasn't used toward buying the house).

    You don't say what sources of "value" you're looking at; its fair market value is what it is. Not clear why you're thinking in terms of foreclosure vs. short sale and asking the lender to sign off on accepting less (of course, they will take into account what assets you have to offer to cover the deficiency).

    Regardless, be prepared to be taxed on the deficiency as though it were income.

  3. #3
    Join Date
    Oct 2006
    Posts
    16,255

    Default Re: Can I Be Sued for a Deficiency After Foreclosure

    Quote Quoting Foster_Foster
    View Post
    CA is a non-recourse state, which means lender wouldn't be in a position to sue you (that said, I presume no part of any refinance involved money that wasn't used toward buying the house).

    You don't say what sources of "value" you're looking at; its fair market value is what it is. Not clear why you're thinking in terms of foreclosure vs. short sale and asking the lender to sign off on accepting less (of course, they will take into account what assets you have to offer to cover the deficiency).

    Regardless, be prepared to be taxed on the deficiency as though it were income.
    The bolded is incorrect as the Mortgage Debt Relief Act of 2007 was extended.

    1. Sponsored Links
       

Similar Threads

  1. Foreclosure: Possible Deficiency After Foreclosure in Florida
    By road2freedom in forum Buying, Selling and Conveying Real Estate
    Replies: 2
    Last Post: 09-08-2012, 01:20 PM
  2. Foreclosure: Responsibility for Deficiency and Taxes After Foreclosure
    By SetMeFree in forum Buying, Selling and Conveying Real Estate
    Replies: 3
    Last Post: 02-05-2012, 07:54 PM
  3. Foreclosure: Liability for Deficiency After a Foreclosure with Second Mortgage in California
    By quattrospider in forum Buying, Selling and Conveying Real Estate
    Replies: 1
    Last Post: 02-09-2010, 08:31 PM
  4. Foreclosure: Deficiency Judgment of Foreclosure
    By lendiron in forum Buying, Selling and Conveying Real Estate
    Replies: 2
    Last Post: 08-25-2009, 02:14 PM
  5. Repossession: Texas Auto Reposession - Can I Be Sued for the Deficiency?
    By lowcust12 in forum Cars and Dealerships
    Replies: 2
    Last Post: 01-15-2009, 06:20 PM
 
 
Sponsored Links

Legal Help, Information and Resources