Foreclosure Deficiency Judgements In The State Of Missouri

Recent headlines indicate that more and more homeowners nationwide are “walking away” from their homes - letting them go into voluntary foreclosure. And these poor homeowners think that’s the last of their worries, but they’re wrong about that.

In 30 States, mortgage companies can force what is known as a “deficiency judgment”. This means that the homeowner still owes the difference between the mortgage’s payoff amount and the amount the mortgage company received from either the sale of the home or a deed in lieu executed by the homeowner.

The former homeowner always owes the taxes on the difference, but more and more mortgage companies are going after mortgagees for the deficiency amounts. 

From Articles.DirectoryM.com: “Even if the bank accepts a “deed in lieu of foreclosure” they can still get a deficiency judgment against the borrower. The borrower is the one responsible for the mortgage or deed of trust payments and he may or may not be the homeowner. If the homeowner has a co-signer, the co-signer will be as legally responsible as the borrower to pay back the deficit due. Depending on whether the foreclosure is judicial or non-judicial, and the specific terms of the mortgage, the bank may not be able to seek a deficiency judgment. These laws vary state-by-state and should be reviewed carefully to determine which applies to the reader.”

PLEASE…Always speak to a real estate professional when deciding what to do. If you walk away, do so in full knowledge of the consequences.

This entry was posted on 02/03/2010 at 12:00 and is filed under Branson/Tri-Lakes Market, Advice For Sellers, News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.