Foreclosure Shortage

[Unregistered]

I am a new comer to this forum, but I do have a question. Let's say a homeowner owes, $100,000 and the lender forcloses the house and auctions it for $70,000 ($30,000 short). Does the lender go after the homeowner for the remaining $30,00 or do the write it off ?

Is there anything the homeowner can do to protect him/herself from the lender coming after him/her for the shortage ?

Thanks

Mazi

[George Roddy, Jr.]

Mazi,

Sorry for the delay in our response.

The answer to your question is - YES.

If the foreclosing lender determines that the property has lost its value due to the condition of the property and/or market conditions then the lender will open the bid at a reduced amount and seek to "sue" the former owner for the 30k deficiency. This will be in the form of a lawsuit/judgment.

Re: anything the homeowner can do?

A. I am not aware of anything the a homeowner could do beside try methods of working to avoid the foreclosure. 4 ways to avoid foreclosure:

1. Work with their current lender
2. Refinance
3. Declare Bankruptcy
4. Sell prior to the auction.

George