Deficiency judgment after foreclosure

[lcarus]

To make a long story short, I was basically forced to abandon my home in May of 2010. Now it's July of 2011 and they've auctioned off my home, and now they're taking judgment against me in the amount of 30,000 dollars. My question is, how long after the judgment will they begin to garnish my wages, and is there anything I can do besides go bankrupt? The sad part is, I don't even have the 1,000 dollars to pay a bankruptcy lawyer. The judgment hearing is at the end of August.

[Gonzo]

JFC dude...

You're a train wreck. It depends on how quickly the courts act but you can probably expect to see the first garnishment in a month or two.

[booyaf2]

JFC dude...

You're a train wreck. It depends on how quickly the courts act but you can probably expect to see the first garnishment in a month or two.

Atta way to cheer him up.

[Rausch]

Find $1,000 somewhere...

[lcarus]

Find $1,000 somewhere...

Yeah lol, I will. Just curious how much time I had before they come "get me" and my wages. Maybe I should pay a lawyer with a credit card and then just go bankrupt on that.

[Saul Good]

Find a way to scrape up about $5000 (cash advance on a CC or something) and offer it to the bank as settlement in full. Let them know that it's that or BK.

[Gonzo]

Find a way to scrape up about $5000 (cash advance on a CC or something) and offer it to the bank as settlement in full. Let them know that it's that or BK.

This is not stupid...

And trust me... I know from stupid.

[Rausch]

Yeah lol, I will. Just curious how much time I had before they come "get me" and my wages. Maybe I should pay a lawyer with a credit card and then just go bankrupt on that.

Can't include CC's anymore...:huh:

[Skyy God]

Find a way to scrape up about $5000 (cash advance on a CC or something) and offer it to the bank as settlement in full. Let them know that it's that or BK.

$5K at 30%? That sounds like a recipe for disaster.

[LiveSteam]

Find a way to scrape up about $5000 (cash advance on a CC or something) and offer it to the bank as settlement in full. Let them know that it's that or BK.

This

[lcarus]

Find a way to scrape up about $5000 (cash advance on a CC or something) and offer it to the bank as settlement in full. Let them know that it's that or BK.

That's an awesome idea but I really have no way of getting that kind of cash anytime soon.

[KCUnited]

Start slanging pills.

[Saul Good]

$5K at 30%? That sounds like a recipe for disaster.

Even if it takes you 2 years to pay off, you're talking about settling $30K for $7500 or so. It beats the hell out of a BK, and he should be able to pay it off quiccker than that.

Cash advance is a last resort, too. I'm assuming he can't borrow frrom a bank. That said, if you've got a paid for car, you might be able to use it as collateral for a small loan.

[Okie_Apparition]

As often as this has happened in the last 2-3 years, it might take 2-3 more.

[Saul Good]

That's an awesome idea but I really have no way of getting that kind of cash anytime soon.

Deliver pizzas at night , donate blood, and sign up for a pharm research study. You're staring down the barrel of a shotgun. Its time to take drastic action.

This can be a huge pain in your ass for 6 months, or it can be an anchor around your neck for 10 years. You have to figure out how much you are willing to go through to clean this up.

[lcarus]

Deliver pizzas at night , donate blood, and sign up for a pharm research study. You're staring down the barrel of a shotgun. Its time to take drastic action.

This can be a huge pain in your ass for 6 months, or it can be an anchor around your neck for 10 years. You have to figure out how much you are willing to go through to clean this up.

Well maybe bankruptcy wouldn't be such a bad thing. I have a home and a car still, and I will have those for at least the next few years no matter what happens. I hate to do it, but it might be the best thing to get me out of this mess that has been weighing on my mind for the last year or so.

[Okie_Apparition]

The bad part about taking bankruptcy now. It may kill your health care plan/jk

[Saul Good]

Well maybe bankruptcy wouldn't be such a bad thing. I have a home and a car still, and I will have those for at least the next few years no matter what happens. I hate to do it, but it might be the best thing to get me out of this mess that has been weighing on my mind for the last year or so.

That should be a last resort. $30,000 might BK you, but $5,000 might settle the whole thing. Don't screw yourself for 10 years if $5K can make this go away.

[tooge]

scrape up as much cash as you can. Move to mexico, preferably a beach. Become a pool boy. screw lonely milfs, spring breakers, and mexican gals. Open up your own little beach bar. It's the only way.

[Phobia]

How many packs of smokes a day habit do you have?

[vailpass]

How many packs of smokes a day habit do you have?

LMAO Is this where you give him a raise without actually paying him anything?

[Phobia]

LMAO Is this where you give him a raise without actually paying him anything?

Don't think you read that thread very well. I offered to match her savings which would have been a $1/hr raise plus the $40 a week she was saving by not buying smokes.

But yeah, anytime you reduce your expenditures it's a raise in the ledger. What's not to like about that?

I'm not anti-tobacco - if you can afford it. But I've seen countless people lose their houses/apartments/cars but never miss a smoke. It's absolutely mind-blowing.

[vailpass]

Don't think you read that thread very well. I offered to match her savings which would have been a $1/hr raise plus the $40 a week she was saving by not buying smokes.

But yeah, anytime you reduce your expenditures it's a raise in the ledger. What's not to like about that?

I'm not anti-tobacco - if you can afford it. But I've seen countless people lose their houses/apartments/cars but never miss a smoke. It's absolutely mind-blowing.

I keed, I keed. I understood what you were doing with your employee.

And yeah at $8.00/pack quitting cigarettes is a fast way to save some $.

[Phobia]

I've chewed off and on for 20 years when I can afford it. But when money gets tight, that nasty habit is the first thing to get the boot.

[mesmith31]

You need to do some research on your states deficiency laws. In many states lenders are NOT allowed to pursue a deficiency post foreclosure. Often times what happens is that if you don't pay your mortgage the lender will seek a judgment in a court of law. These judgments can be either an 'in personem' judgment (meaning against you personally) OR an 'In Rem" judgment, meaning against the house or the land.

Usually, if they get a judgment against the house, then they are limited or prohibited from coming after you personally. They take the house at sale, liquidate it and recover what they can from the asset. I believe in MO that is the case , although I don't live there. In IA, that is the case.

http://www.foreclosure.com/statelaw_MO.html

Many times with these multinational corporations, they don't know regional laws. They send the account to collections and then the homeowners will get a call stating that they owe money. If you can tell them about your state law, you can generally get them to stop calling and pursuing collections all together as it is prohibited.

You will however likely be getting a 1099 from your lender for the amount of the loss. This is generally unavoidable and if you don't get one you are supposed to file one yourself. If you get one, you may qualify under the Homeowner Relief Act and be able to file a non-recognition form and cancel out the tax obligation. You also can get out of it by following the IRS definition of insolvency if you qualify under their definition.

Try some local non-profit lawyers for information. They can let you know about local laws pertaining to deficiency judgments and it shouldn't cost you anything and you may be able to avoid the debt all together.

[Dayze]

You need to do some research on your states deficiency laws. In many states lenders are NOT allowed to pursue a deficiency post foreclosure. Often times what happens is that if you don't pay your mortgage the lender will seek a judgment in a court of law. These judgments can be either an 'in personem' judgment (meaning against you personally) OR an 'In Rem" judgment, meaning against the house or the land.

Usually, if they get a judgment against the house, then they are limited or prohibited from coming after you personally. They take the house at sale, liquidate it and recover what they can from the asset. I believe in MO that is the case , although I don't live there. In IA, that is the case.

http://www.foreclosure.com/statelaw_MO.html

Many times with these multinational corporations, they don't know regional laws. They send the account to collections and then the homeowners will get a call stating that they owe money. If you can tell them about your state law, you can generally get them to stop calling and pursuing collections all together as it is prohibited.

You will however likely be getting a 1099 from your lender for the amount of the loss. This is generally unavoidable and if you don't get one you are supposed to file one yourself. If you get one, you may qualify under the Homeowner Relief Act and be able to file a non-recognition form and cancel out the tax obligation. You also can get out of it by following the IRS definition of insolvency if you qualify under their definition.

Try some local non-profit lawyers for information. They can let you know about local laws pertaining to deficiency judgments and it shouldn't cost you anything and you may be able to avoid the debt all together.

:thumb: excellent post.

but you didn't mention anti-freeze; I think we'll let it slide since you don't post very often.