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Ask D Downs-Vollbracht Your Own Question
D Downs-Vollbracht
D Downs-Vollbracht, Lawyer
Category: Real Estate Law
Satisfied Customers: 10
Experience:  Partner - Downs-Vollbracht & Brown. PLLC
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My house was recently forclosed by the bank and it was sold

Customer Question

hi my house was recently forclosed by the bank and it was sold for less than what the total loan including all the legal fees around 50k. what happens now?
Submitted: 5 months ago.
Category: Real Estate Law
Expert:  D Downs-Vollbracht replied 5 months ago.
It depends on the lender and the terms of your mortgage. In cases like this where the loan is "upside down" and even after a foreclosure the borrower still owes the lender money, they can pursue you for the difference. Most lenders have been reluctant to pursue claims under $75k but it will depend on the bank / lender in question and the state you are in. A number of states now have laws prohibiting the lender from suing for that deficiency amount. In order for the lender to sue you for that amount, they will have to serve you with notice so you won't be blindsided at least. If you have filed bankruptcy that too can make any chance of recovery remote. I'm sorry about the loss of your home. Hopefully you have a non-deficiency seeking lender or state law to protect you and limit the lender to exactly what the property (which was after all the collateral for the mortgage) sold for in the foreclosure.

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