Home Sale Relief

I am indebted to IAmFacingForeclosure.com for bringing attention to an article about how when you have had a foreclosure, it isn’t over…the lender can still pursue you in court.

‘Q: My home was foreclosed on, resulting in my losing the home and the lender obtaining a judgment against me for $22,000. I then received a court citation that says I have to go to court and give my lender my tax returns, bank statements and personal financial records for the past three years. I know I owe the money, but can the lender keep hauling me into court after it won a judgment? What’s next, debtor’s prison?’

Yes, kind of. This is why I really suggest you don’t just walk away from a foreclosure. Deal with it. Do a short sale. Or a deed in lieu of foreclosure. Work things out. There are many situations where if you just let things go you can get into more trouble even after the foreclosure sale:

If you have a second mortgage and a first mortgage, often the first mortgage will foreclose but the second mortgage won’t. Guess what? The second mortgage holder can sue you in court after the foreclosure sale. They can get a judgment and they can go after your other assets and drag you into bankruptcy and that might require you to pay them back in a chapter 13 over many years.

Or, in states like Illinois, the lender can get a deficiency judgment and go after you. Even in states that use deeds of trust rather than mortgages, if you have refinanced you may have lost some protections that state law would have granted you for a purchase money mortgage.

Please get instant access to my 25 page report Keep Your Home avoid foreclosure, and learn how to do short sales even if you have several lenders, and how to cut credit card debts so you get credit card debt relief. I always maintain your privacy completely and you can unsubscribe anytime.