Deficiency Judgments After Foreclosure
If you are facing foreclosure, or have lost your home through foreclosure, you might still owe your mortgage lender money after the sale. This happens if the foreclosure sale price is less than the amount remaining on your mortgage - it's called a "deficiency." Whether your lender can go to court and get a judgment for the deficiency, and then collect it, depends on state law. Below you can find the law on deficiencies in each of the 50 states.
Deficiencies play a role in short sales too. In most states, you are on the hook for a deficiency after a short sale. But there are ways you can avoid or handle a deficiency.
And for foreclosures, short sales, and deeds in lieu of foreclosure, you might owe the IRS some money if the lender forgives the deficiency
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Deficiency Judgments: Will You Still Owe Money After the Foreclosure?
If you lose your home to foreclosure, you might still owe money to your lender.
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What's the Difference Between a Recourse and Nonrecourse Loan?
If you have a recourse loan, the bank may still go after your assets if it has not recouped all of its money in a foreclosure.
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How Do Mortgage Lenders Collect Deficiency Judgments?
Once a mortgage lender gets a deficiency judgment against you, it can then proceed to collect on that judgment.
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States That Prohibit Deficiency Judgments Following Short Sales
Most states allow deficiency judgments after short sales.
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How to Avoid a Short Sale Deficiency Judgment
Learn how to avoid owing your mortgage lender money after a short sale of your home.
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Can the Bank Get a Deficiency Judgment After a Short Sale In Nevada?
Nevada law prohibits the bank from getting a deficiency judgment after a short sale—or after a deed in lieu of foreclosure—under certain circumstances.
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