Foreclosure Leads to Judgments Issued.

By
Real Estate Broker/Owner with NoVa Brokers LLC 0225 094634 VA/ 643686 MD

The more I talk to people who are thinking about letting their home go to Foreclosure, just giving up, the more I realize that they think this decision will end their dilemma and everything stops because they are giving the home back to the bank.

 
I explain that after a home goes to foreclosure that the financial burden is not lifted and they still may or most likely will receive a “Balance due” after all is said and done.  When they cannot pay, then a “Judgment” will be issued.  After that, collections will be pursued by possibly garnishing wages, bank accounts, etc. which usually ends up in bankruptcy which does end their hardship.

 
Please seek legal advice before considering a foreclosure to make sure you understand the entire process of foreclosure and what happens after your home has been foreclosed by the bank.

 

 

 

 

Posted by

FOR ALL YOUR REAL ESTATE NEEDS

 

STELLA BARBOUR

NoVa Brokers LLC

1483 Chain Bridge Road Suite 103

McLean, Virginia 22101

571-814-3002 OFFICE

703-999-6104 CELL

571-281-2866 FAX

www.novabrokersllc.com

stellabarbour@yahoo.com

Licensed in Virginia & Maryland

 http://www.novabrokersllc.com/

 

 

 

Comments (13)

Vangie Williams
The Evans Group DMV - Serving Virginia - Fredericksburg, VA
Real Estate with Personality
Great advice Stella.  I recommend the same.  It's so sad that people think its over because the bank has possession.  In fact, some bankruptcy lawyers don't even understand the new tax breaks.  Just had one lawyer tell a client to foreclose and file bankruptcy afterwards.  I told her to definately get a second opinion before taking the house of the market and foreclosing.
Jan 12, 2008 02:00 PM
Robert Huntsinger
Empire Realty - Upland, CA
Empire Realty Upland, CA - Full Service at a Discount

The nice thnig about my states laws are that if the loan they are going to walk away from are purchase money loans there is no recourse.  Take care!

RJH

Jan 12, 2008 02:09 PM
Robert Huntsinger
Empire Realty - Upland, CA
Empire Realty Upland, CA - Full Service at a Discount

The nice thnig about my states laws are that if the loan they are going to walk away from are purchase money loans there is no recourse.  Take care!

RJH

Jan 12, 2008 02:09 PM
Robert Huntsinger
Empire Realty - Upland, CA
Empire Realty Upland, CA - Full Service at a Discount

The nice thnig about my states laws are that if the loan they are going to walk away from are purchase money loans there is no recourse.  Take care!

RJH

Jan 12, 2008 02:09 PM
Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland
Thanks for commenting Robert.
Jan 12, 2008 02:12 PM
Trey Thurmond
BCR Realtors - College Station, TX
College Station , Texas Homes

Stella,

You are right. "Deficiency" judgements are common ...and there can be IRS issues also.

Jan 19, 2008 12:38 PM
Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland
Trey- Thanks for commenting.
Jan 19, 2008 12:40 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Their alternative is filing for bankruptcy...their BIGGER problem is finding alternative housing once they leave their foreclosed home.....rental homes will have application/credit criteria as well as pet restrictions.

Jan 21, 2008 01:56 PM
Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland

Wallace - You are right about bigger problems in finding a rental.  It is harder to rent than it is to buy in these type of cases.

Jan 22, 2008 02:49 AM
Margaret Hokkanen
SurfTheTurf.com, Inc. - Carlsbad, CA
→ Carlsbad Real Estate

I haven't done a survey, but I think many states don't allow the primary mortgage holder to go after the deficiency (my understanding is that this is the situation in California).  I understand from my loan officer that, in general, the second loan holder cannot do so either, but he says it varies based on the exact nature of the second.  But I would not render such advice to a client because if you are wrong and the client relies upon the advice, thinks could get difficult.

Jan 22, 2008 12:10 PM
Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland
Margaret - That is why I tell people to seek legal advice instead of "assuming".  In Virginia, we have had judgments filed at the lawfirm I work at and as a Bankruptcy Assistant, I have had to file bankruptcy for clients that have had judgments filed against them that they could not afford to have their bank account garnished or their pay garnished.  Thanks for commenting.
Jan 22, 2008 12:34 PM
Steve Shatsky
Dallas, TX
Deficiency judgements are becoming more and more common and as mortgage lenders are facing more and more financial trouble I suspect they will continue to increase as a way to mitigate the lenders' losses further.
Jan 22, 2008 05:11 PM
Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland
Steve - There was a time that this did not happen for someone that lost their home but I am seeing them more and more already. 
Jan 23, 2008 12:16 AM