Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.
Good morning. Pennsylvania, unfortunately, is a deficiency state pursuant to 42 Pa.C.S. § 8103. The deficiency is measured in PA by the excess of the amount owed over the greater of: i) the fair market value of your property, or ii) the foreclosure sale price. To determine the fair market value, lender is required to file a Petition to Fix the Fair Market Value of Real Property
Sold within six (6) months of the foreclosure sale. If the lender fails to do so, the lender cannot pursue the deficiency. Whether or not they will pursue a deficiency 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. Should they decide to pursue a deficiency, your Virginia house could be at risk. You would be protected by Virginia's homestead
exemption of $5000 in equity plus $500 per dependent(husband and wife may double), but any excess value would be at risk.
This is the part of my job I don't like...when the law is not in favor of my customer. I wish I could tell you there was absolutely no risk to your VA house, but, I can only provide you information based on the law so that you can act on the best available information to you. ………..I wish I had better news, but can only hope you recognize and understand my predicament and don't shoot the messenger. I'm sorry!
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