Deficiency Judgment Proceedings
When a person allows a lender to foreclose on their home in order to settle a debt, there sometimes is an amount of debt left over that the foreclosure did not satisfy. When the foreclosure process is complete and the home that the bank has taken back has not fully settled the debt, the bank or lender will pursue a deficiency judgment. A deficiency judgment is just as it sounds. A lender will file a suit against the borrower if the amount of the loan repaid was insufficient.
When a lender pursues a deficiency judgment, he or she can also use this to put a lien on the borrower’s other properties, such as a vacation home or vehicle, to help repay the difference. It essentially gives the lender the legal right to collect the remainder of the debt. If you have been notified of a deficiency judgment from your lender or you are in the early steps of foreclosure and wish to avoid a deficiency judgment, please do not wait another minute longer to call Chauncey Law Firm.
