Will I owe money after
a foreclosure
If you are facing foreclosure there is a good chance
that you may end up owing your lender money after the
foreclosure is complete. The laws vary from state to
state so you will want to speak to a real estate attorney
about your rights and possible consequences of a foreclosure.
You may be able to negotiate a short sale with the
lender to avoid owing money after the foreclosure. A
"short sale" is when you negotiate a lower pay off amount
then what the lender has actually issued.
In the state of California, a variety of restrictions
prevent lenders from pursuing deficiency judgments against
borrowers who default on a "purchase money" mortgage.
Sometimes lenders will issue a "deficency judgement"
lien in your credit report for the amount that was unpaid
at the end of the process. This varies from company
to company.
Contact a mortgage professional at 888-275-6788 to
discuss which attorney would be best for their current
situation.
Some Lenders will issue a 1099 income statement to
borrowers who are defecient in paying off their present
mortgage balance.
