After Foreclosure - What To Do About A Judgment Deficiency

If you have gone through foreclosure in some states, a lender may go after you for a judgment deficiency. This is the amount of the money that is still due to the lender less the sale of the home after foreclosure sale. In some states, the court will also allow for legal fees to be included in this judgment. The lender can then proceed to enforce this judgment in several different ways. They can attach a lien on any of your other assets and even force you to sell them, they can freeze your bank accounts or they can even garnish your wages. No one needs any more problems after foreclosure.



Not all states allow for a deficiency judgment after foreclosure, but many of them do. The amount that the lender can obtain for this judgment also varies from state to state. Most people do not understand the foreclosure process let alone the laws with regard to deficiency judgments in their state. They may feel that the only option out is bankruptcy. However, bankruptcy further destroys your credit. While a foreclosure will stay on your credit for seven years, a bankruptcy remains on your credit for ten years. Also, with the change in the bankruptcy laws, in some cases, those who are working often cannot file for Chapter 7 bankruptcy protection which eliminates their debt. Their only option is to file Chapter 13 in which they will have to pay off the debt. This is expensive, will force you to pay off the lender over a period of time and is court ordered.



You can usually save money after foreclosure if you negotiate with the lender regarding the deficiency judgment. The lender has an incentive to negotiate this amount as they will not want to have to spend more time with legal proceedings against you. The negotiating power that you have after foreclosure with regards to a deficiency judgment depends upon the laws of your state. This is why you need a company on your side that understands how to negotiate a settlement on your behalf. If you are facing a deficiency judgment after foreclosure, you are better off negotiating a settlement with the mortgage company than have them come after you for money you owe through various means that can further derail you financially. Trying to negotiate on your own behalf, however, is time consuming and could lead to a higher settlement than the mortgage company or bank may have settled for.



When you use a company that is experienced in negotiating after foreclosure deficiency judgment cases, you stand a much better chance of getting the judgment lowered to the point where you can pay it off and get on with your life. This also looks better on your credit as the debt will be paid in full. You can get on with your life and not have to worry about paying for a home you no longer own when you work with a company that will work with your lender to make sure that they get the best settlement for you when it comes to a judgment for deficiency of your mortgage after foreclosure.





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A Deficiency Judgment is the amount of money that you may owe After Foreclosure if your home sells for less than what you owe the bank. You can find help in negotiating a settlement when you go to Judgment Deficiency.