Foreclosure Nightmare: Lenders May Come After You for the Balance Due


If you thought foreclosure was the end of your legal nightmare, think again.

After a bank forecloses on your home, it sells your home at public auction. And the sad part is that in a down real estate market, the bank may not be able to sell your home to cover the full amount of your mortgage.

The difference between the amount you owed on your mortgage -- and the amount the bank got at auction -- is called the “deficiency.” And it takes little effort on the bank’s part to convert the deficiency into a “deficiency judgment” against you.

What’s worse, even if you got the bank’s approval to sell your home for less than the mortgage, the bank can still come after you for the difference.

Please see full article below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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