Mortgage Deficiency Judgments

by Isaac Benmergui, Esq on October 25, 2011

If you short sale your property or offer a deed in lieu of foreclosure, your mortgage lender could sue you for the deficiency between what you still owed and the amount the property was eventually sold for. The lender has five years from the date of the last activity on your account to bring suit against you. If it’s five years and one day, it’s too late.

If the lender sues and wins the lawsuit, he will have a 20-year time span in which to enforce the judgment. Unfortunately, this could mean your bank accounts and wages could be garnished. The lender can also ask for a sheriff’s sale of some of your property. These measures are drastic, and there are defenses available, particularly if you are the head of the household. With lenders having suffered such losses in the down real estate market, some are also very willing to settle for pennies on the dollar.

Getting Legal Help

The law offices of Isaac Benmergui can help you with your legal real estate needs; call 780-800-2510 or email Isaac@benmerguilaw.com for more information or to set up an appointment today.

 

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