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Richard
Richard, Attorney
Category: Legal
Satisfied Customers: 54716
Experience:  Attorney with 29 years of experience.
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We live in Texas and are currently carrying two mortgages,

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We live in Texas and are currently carrying two mortgages, but we just can't do it anymore. We only live in one home and we are upside down on the other one combined with the fact that my husband's ex left it in such a state of dis-repair that we cannot afford to fix it up. We are considering letting the other house go. We understand that if we allow the home to go into foreclosure, he will likely have a judgement placed against him after the home is auctioned. What exactly happens when a judgement is placed against someone? If you don't have the money to pay, what can they do to you?
Submitted: 7 years ago.
Category: Legal
Expert:  Richard replied 7 years ago.
<p>Good evening....Texas is a deficiency state...meaning the lender can pursue a deficiency judgment against the borrower after a foreclosure...the excess of the debt over the greater of the foreclosure price or the fair market value.   Whether or not the lender will actually pursue a deficiency judgment and collection will depend on how the lender views the odds of collectibility. If you are basically judgment proof, many times the lender will not spend the time and money pursuing something that is uncollectible.   Should the pursue it, however, the lender would have the right to attach your assets to collect the judgment, if you have any non-exempt assets. In Texas, your homestead (the one you live in) is an exempt asset.   If you seek bankruptcy protection, the deficiency judgment would be erased. </p><p> </p><p> </p><p><em>I hope this has given you the guidance you were seeking. I wish you the best of luck!</em></p><p> </p><p><em> If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would <u>please click the GREEN ACCEPT button </u></em><em><u>NOW</u></em><em>, so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.</em></p><p> </p><p><em> If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you. </em></p><p> </p><p><em>The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.</em></p>
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Customer: replied 7 years ago.

By attacking our assets, does that mean they can sieze our vehicles? Do they have to take us to court to do so? If we never pay and we don't have any assets, does that mean the judgement stays on our credit report forever unless or until we file bankruptcy or they decide to write off the debt?

Expert:  Richard replied 7 years ago.
<p>Texas has a very liberal bankruptcy law...under Texas law, a vehicle for each member of the family would be considered an exempt asset and thus beyond the reach of creditors.</p><p> </p><p>A foreclosure and/or bankruptcy stays on your credit report for 7 years. </p><p> </p><p> </p><p><em>I hope this has given you the guidance you were seeking. I wish you the best of luck!</em></p><p> </p><p><em> If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would <u>please click the GREEN ACCEPT button </u></em><em><u>NOW</u></em><em>, so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.</em></p><p> </p><p><em> If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you. </em></p><p> </p><p><em>The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.</em></p><p> </p>
Richard and 7 other Legal Specialists are ready to help you