Foreclosure is something most homeowners do not take into consideration when taking a loan. In fact, concerns are generally related to the fact the banks’ actions will not stop after foreclosure. In many cases, after the foreclosure process has been completed, bank consultants and representatives will initiate foreclosure deficiency judgments in an attempt to minimize the bank’s losses. However, even though the chances to be submitted to deficiency judgments after foreclosure are increasingly more likely, it is a good idea to take the necessary precautions in preventing, or at least minimizing, the sums that the banks request homeowners to pay.
Whether it is because banks are not interested in making all their deficiency judgments public, or perhaps because of the fact that a considerable number of homeowners relocate to other states after going through foreclosure, and they are not even aware of having to also deal with this process; cases of deficiency judgments are there and are a real threat to the future of many former homeowners. Lately, the internet has been home to a very large number of websites that are telling the public that foreclosure deficiency judgments and other deficiency judgments are nothing more than a myth and people should not worry about this process, but now we are seeing a turn in this trend and are seeing a large number of articles, blogs, press releases and news related media reporting the threat of lenders now pursuing for deficiency judgments as a result of foreclosure and short-sales.
No one knows who is behind these particular articles or blogs, maybe hopeful homeowners who would be interested in convincing people that deficiency judgments are not a viable possibility, but unfortunately they are wrong. The threat of having to deal with foreclosure deficiency judgments hovers over all those whose homes have been foreclosed. In fact, the likeliness of deficiency judgments in today’s market is becoming increasingly more common, and can be more damaging than the loss of your home through foreclosure or short-sale. As you no longer own the collateral, being your home, they are now seeking a deficiency judgment against you for thousands of dollars. Banks are showing that they are pursuing deficiency judgment against the homeowners, and depending on your state, deficiency judgments can be automatic, or the lender may opt to spend a few hundred dollars to acquire these deficiency judgments. In the past, filing for deficiency judgments against the homeowners was a lengthy and costly process. However, in today’s market this process has been stream lined by the lenders, simply due to the fact that the lenders now have such a large number of foreclosures and short-sales that are creating large deficits in their financial statements. As a result, you are seeing lenders using more practical means of cost effectiveness, stream lining the process to acquire deficiency judgments against the previous homeowners. This process will differ from state to state, but in many cases the outcome are deficiency judgments against the homeowner.
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