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With the Income You Need to Buy a Median-Priced Home rising, you may need to Learn About Adjustable Rate Mortgages to preserve affordability.

With the Income You Need to Buy a Median-Priced Home rising, you may need to Learn About Adjustable Rate Mortgages to preserve affordability.

Will my lender come after me following a foreclosure?

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.

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
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