What is a deficiency Judgement in real estate?
What is a deficiency Judgement in real estate?
A deficiency judgment is a ruling made by a court against a debtor in default on a secured loan, indicating that the sale of a property to pay back the loan did not cover the outstanding debt in full.
How do you negotiate a deficiency Judgement?
Even after a deficiency judgment is entered, your lender still may work out an agreeable payment plan with you. You can try to negotiate a payment by calling the lender or the lender’s attorney. Almost every lender’s attorney will take your call, and at least listen to payment offers that you make.
Which states allow deficiency judgments?
State Deficiency Judgment Laws
| State | Most Common Type of Foreclosure | Are deficiency judgments allowed? |
|---|---|---|
| California | Nonjudicial | Not after a nonjudicial foreclosure. |
| Colorado | Nonjudicial | Yes. |
| Connecticut | Judicial | Yes. |
| Delaware | Judicial | Yes. |
Is California a non deficiency state?
A state with one of the most stringent anti-deficiency laws is California. California CCP § 580b(3) states that no deficiency judgment shall lie under a deed of trust or mortgage on a dwelling for not more than four families given to a lender to secure repayment of a loan which was in fact used to pay all or part of …
Is California a non recourse state?
A non-recourse loan is one where, in the case of default, a lender can seize the loan collateral. Home mortgages—though generally recourse—are non-recourse in 12 states: Alaska, Arizona, California, Connecticut, Idaho, Minnesota, North Carolina, North Dakota, Oregon, Texas, Utah and Washington.
What happens if I can’t pay a Judgement in California?
If you do not pay the judgment within 30 days or file a Motion to Vacate the Judgment or Notice of Appeal the judgment creditor can “garnish” your wages. The standard portion withheld is 25% of your net (after-tax) pay. The Sheriff will give the money to the judgment creditor.
How do I know if my mortgage is covered by cares act?
Steps to request forbearance under the CARES Act If you don’t know if you have a federally backed mortgage, call your mortgage servicer. You can find your servicer on your monthly mortgage statement or by searching the Mortgage Electronic Registration Systems (MERS) website: www.mers-servicerid.org/sis .