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Will my lender come after me following a foreclosure?

By   |  Posted in Ask The Expert

Q: Does Bank of America pursue deficiency judgments in home foreclosure? 

A: Whether a mortgage lender can or cannot pursue a deficiency judgment against you after a foreclosure depends upon state laws. You don't mention where you are, but you can review the laws for your state to see what your lender is allowed--or not allowed--to do in such a case.

However, these laws can be complicated and there can be all manner of exceptions, so you will do well to consult an attorney who specializes in property issues in your state to see what can and cannot be done in your case. There may or not be time limits on when an action can be filed against you, there can be exclusions of your personal assets (or not) and plenty of other caveats which need careful review.

Deficiency judgments aren't always the result of a foreclosure--lenders can pursue these in the event of a short sale, too. However, unlike in a foreclosure action, this liability can often be negotiated away, and a lender can waive some of all of their rights to future claims.

About the author:
KTGA 25-year expert observer of the mortgage and consumer debt markets, Keith Gumbinger has been cited in thousands of articles covering a wide range of consumer finance and economic topics in outlets ranging from the Wall Street Journal to the Bottom Line newsletters. He has been a featured guest on national broadcasts for CNN, CNBC, ABC, CBS and NBC television networks and has been heard on NPR and other national and local radio programs. Keith is the primary researcher and writer for HSH.com's MarketTrends newsletter and has authored or co-authored a number of consumer guides on mortgages, home equity, refinancing and more.

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