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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?
State/Country relating to Question: Texas Already Tried: Technically nothing. The home is in quite a state of dis-repair at the moment. We had considered renovating and renting it out or evening doing a FSBO with owner financing. We have the knowledge and ability to do all the repairs on our own, but do not have the time. Because we are paying two mortgages, we do not have the money to hire someone else to do all of the repairs. My husband has never missed a payment and has never been late on a payment at this point, but other bills are continuing to fall further behind. We had hoped to not get to this point because we wanted to salvage his credit.
<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>
Attorney
Attorney/Developer
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?
<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>