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Thinking of Walking Away? What About the Deficiency Judgement?
Thinking of Walking Away?  What About the Deficiency Judgement? Many homeowners who are facing foreclosure fail to consider is the possibility of a deficiency judgment.  Deficiency judgments are levied by your former lender, who simply 'sues' you for the balance of what was owed on your mortgage at the time of the foreclosure less the eventual sales price, plus legal expenses, penalties, etc.   If the primary mortgage of $300,000 nets the lender (after foreclosure) $150,000, the amount of the deficiency would be $150,000 + legal fees, penalties, etc. Homeowners facing foreclosure in North Carolina can and are walking away or otherwise allowing their homes to be foreclosed upon without any recourse from their lender.  Purchasing a new home is not an option for 7 - 10 years but, they could escape the possibility of deficiency thanks to North Carolina General Assembly Statute § 45‑21.38A.   Before you take any steps to walk away, I would strongly advise that you meet with an attorney to see if you are eligible to apply for mortgage deficiency forgiveness. If it is your primary residence, the loan was originated after 2005 and has remained your mortgage since 2005, and is NOT a line of credit, you ... more

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