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Good afternoon. In Texas, the lender would have the right to pursue you for the shortfall. BUT, whether or not they will depends upon their assessment of the collectibility of a deficiency judgment. So, if you can convince them there is nothing for them to get, and that if they were to pursue a judgment, you would simply file for bankruptcy protection and get the judgment discharged—and even if you have no intention of doing so, it is still good leverage with the bank because they do not know whether or not you would… then it is unlikely the lender will spend the time and money necessary to get a judgment they believe is uncollectible in the end. ALSO, remember this...in Texas: i) wage garnishment is not allowed for this kind of debt; ii) Texas has an unlimited homestead exemption
so your home cannot be touched; and iii) your retirement account assets and any retirement income is all exempt as well from their reach.
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