For the many thousands of good, hardworking Alabama homeowners who were forced from their homes by foreclosure during the ongoing Great Recession, there is a nasty flashback coming from the past to haunt them. Many have no idea that it is about to hit them. Just at the moment workers are finding jobs again and rebuilding their lives, they get knocked to the floor once again by the mortgage company that took their home.
How can this happen? The answer is called mortgage foreclosure deficiency. Mortgage foreclosure deficiency happens when the foreclosed home is sold for less than is owed on the mortgage, leaving a balance owing to the mortgage lender. This balance is the deficiency. It is made worse when the mortgage lender adds fees and costs and anything else they can think of to run up the deficiency. These deficiencies can total TENS OF THOUSANDS OF DOLLARS.
When the mortgage company forecloses and sells the home for less than the mortgage balance, they get paid the difference by insurance policies that you used to pay as part of your mortgage payments. The mortgage insurance company starts the process of suing the former homeowner so they can get a judgment for the amount of the deficiency. They can then chase the poor defendant down to forcibly take from him again!
The deficiency judgment is used to get a wage or bank account garnishment. This garnishment forces your bank or employer to seize your money and send it to them. This way they can follow you for years until you are left not only without your home, but now without the means to keep food on the table. If that’s not enough, they get interest on the deficiency judgment which grows until paid.
There is a way out. Bankruptcy will protect you from mortgage deficiency lawsuits and judgments. Take back what is yours. Keep your paycheck. Haven’t they taken enough from you already? Call 205-989-1919 now for a free consultation.