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Liabilities Right After Foreclosure

02nd March 2011
By karen in Real Estate Law
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Most homeowner is not aware that right after foreclosure problem, the crisis is not yet done. There are negative effects right after foreclosure and all homeowners should know about this thing. There are lots of liabilities that you need to face right after the crisis. It may also happen that the lender and the barrower may sue the each other right after foreclosure crisis. This is the reason why foreclosure is not yet done right after losing your home.

After shocks are possible and you need to be aware about these problems that might arise right after foreclosure crisis. Majority of people with default mortgage sometimes see their losses right after reaching the final stage of foreclosure proceeding. You may be very surprised knowing that your lender sue you right after you suffer from foreclosure. Actually, this is the saddest thing that might happen to all homeowner who experienced foreclosure.

As you all know homeowners have unpaid loan and your lender can use this unpaid loan to start suing you. Lots of residences in America are not aware that the HOA can be used by every lender to sue their barrowers. Another possible caused is the mortgage deficiency judgment. This can take place if the price right after the sale is insufficient to cover the entire mortgage debt.

The balance that was unpaid is called deficiency and this can be used by your lender to sue you right after foreclosure. Because of deficiency judgment, the lender can file a case against you even if you have already lots your home because of foreclosure.

The situation may depend upon the law that governs foreclosure in a particular state. Some states require the lender to wait for several years’ right after they initiate deficiency judgment and this will decrease the tendency of lender to a case against you.

Almost all states in the United States implemented their own laws regarding foreclosure. This is to protect the rights of homeowners against abusive lenders. You need to be aware that some states do not have any anti-deficiency judgment and the protection that their law can give to homeowners is limited.

For instance, you are living within the state of Arizona. You have to be aware that you may not use the same benefit that California residences experience. Most homeowners are not aware out this kind of liability that they might face under this homeowner’s association law. It is important for all homeowners to know that there are two types of law. This is the secured payment and the property owner.

The time that it may take right before the foreclosure occur will take place. That is why you can do a lot of things to prevent foreclosure from affecting your family and to save your home. If you neglect the chance of getting your home, then you have to face certain circumstances. It takes longer time right before a homeowner can recover from this crisis. This is the reason why you need to be extra careful in dealing with your foreclosure problem.

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