Although the real estate market in this country seemed to bounce back from the crash of 2008, foreclosures are still happening at a regular pace. Many homeowners are under the impression that if they lose their house to foreclosure that they can simply walk away. Unfortunately that’s not the case. Without the representation of an experienced foreclosure attorney they fall into the trap of the deficiency judgment.
Many times people owe more in their mortgage than what the house is worth. This is commonly referred to being upside down in a home mortgage. When this happens the house goes into foreclosure and the house is then sold at a foreclosure auction.
Though the bank will sell the house for less than what it is owed it does not stop coming after the homeowner. The lender will continue to pursue the homeowner for a deficiency judgment. For example, let’s say that you owe $400,000 on a mortgage and the house is sold for $300,000 at a foreclosure auction. The bank will continue to pursue the $100,000 difference.
Unfortunately most people don’t realize this until they are hit with a bank account levy or a wage garnishment. A lot of times people don’t realize this until they see the credit report judgment on their credit reports. It is at that time that they first start to seek the advice of a qualified foreclosure attorney. These deficiency judgments can totally disrupt your life by preventing you from withdrawing your hard-earned cash and taking a chunk out of your paycheck.
The most important thing a person can do is speak to a qualified attorney. The law office of Abel Pierre, PC has been representing homeowners and saving their homes for over a decade. If you need a qualified short sale attorney, or foreclosure attorney, please do not hesitate to contact us by sending us an email or give us a call before it’s too late.