Alabama Foreclosure: Can I Be Sued For A Deficiency After My Foreclosure?
Alabama Foreclosure: Can I Be Sued For A Deficiency After My Foreclosure?
We talked about how a foreclosure can result in a deficiency which is where your house is sold for less than what you owe.
It is possible, and in 2017 we are seeing this happen more and more.
I know some people feel like this is illegal.
This is not true in Alabama.
It may be true in other states (for example California under some circumstances) but here you can be sued for a deficiency after a foreclosure.
If you can be sued, then you know you may have credit reporting issues and you may face debt collectors.
Or, you may face debt buyers trying to collect the alleged deficiency.
So what are your options?
You have several.
You can try to negotiate a settlement on the deficiency.
Some companies work out very favorable terms and others are more difficult.
If the foreclosure was illegal or wrongful, it may be wise to look into suing the mortgage company.
That way, you can get it resolved on yoru to get this issue resolved under your terms and get this resolved on your time table than waiting for someone to potentially sue you years down the road.
You can also file bankruptcy to discharge the deficiency if you qualify for a Chapter 7 bankruptcy. Pretty extreme solution but it can work.
If there is credit reporting and the amount claimed as a deficiency is wrong, then you may want to look into disputing the credit reporting and if this does not correct it, you may want to sue the mortgage company for false credit reporting.
We have found that suing the mortgage company for false deficiency reporting has a wonderful encouraging impact on them. They often decide it is not worth it to go after you for a deficiency judgment.
It also helps them to correct your credit report and pay money damages.
Bottom line….
If you have a deficiency from an Alabama foreclosure, it makes sense to get with a consumer protection lawyer in your state to find out your options.
There is no “one size fits all” option.
Instead you need to get with a lawyer to look at your individual circumstances to find out what is best for you right now.
Contact Us.
If you live in Alabama, feel free to call us at 205-879-2447.
Or fill out our contact form and we will get in touch with you soon.
We will gladly help you figure out your best course of action.
Thanks for reading, and have a great day!
Hi. Recently we spoke to an attorney in our town in South Alabama. We are having issues with our mortgage company not returning our calls. We have gotten behind on our mortgage due to a job loss and we have been unable to keep up. We had a loan modification done on a trial period (trying one program to see if worked). This didn’t help us much so we are in a second round of loan modification. We tried to make a payment just last week for the first modification amount ( I had saved up) and the payment was refused because we are “in modification” again. I am at a loss really. The attorney (one referenced on this site) said we don’t have enough debt to qualify for a chapter 13 and we filed a chapter 7 about 3 years ago when my husband lost his job. We reaffirmed the house determined to work work work to keep it. He says we must either jump through the hoops with the mortgage company or just abandon the house. I am seriously scared to be sued for the deficiency but I just don’t know what else to do. We have left a message every 2 days and we are documenting every call and every conversation. Any advice would be helpful. Thank you, Lori
Lori,
You will need to work with your attorney in South Alabama as he knows your specific situation. I’ll give you some general guidelines that we tell our clients:
The loan modification process is difficult, annoying, and frustrating all at the same time. My suggestion is if you want to keep your house, keep pushing on it. Whatever is asked, provide it. Keep copies as the bank will “lose” your documents and ask for them again.
If you expect this to happen, then you won’t be surprised or upset — instead you pull out your copy of the documents and send them to the bank. If you know the bank wants your pay stubs or bank statements, etc. go ahead every month and get those ready so it is not difficult to provide the information when the bank asks for it at the last moment.
Do your best and keep documenting everything. Stay in touch with your attorney and this will give you the best chance of being successful.
Best wishes!
John Watts
On 12 December 2013, I contacted Citimortage and spoke with Ms Ingrid Barrera M885 843-2549 Ext 0480013. I applied for Loan Modification Program, I was instructed to fill out, 2012 tax return, the application which included my pay stub,2012 tax return utility statement, loan number sign and date. I did all that I was instructed to do and returned the paperwork by fax which costed dearly. When I checked on the paperwork I was told later that no one could talk with me.
On 12 April 2014 I was ordered out of my home. My family and I had to move within days of notification 307.2 miles from Huntsville, AL. I have a daughter with Type 1 diabetes and a 3 year old grandson that lives with me I take care of both. I had just retired because of health reasons.
On16 June 2014 I received a certified letter from Stephen Millirons, P.C. the attorney representing Citimortgage. That I move back in the house. After all the anguish, pain and suffering my family and I had to endure because of Citimortage. With no intension to move back in the house.
Ruby J. Turner
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Ruby,
I’m sorry you had to go through that. Thank you for sharing your experience.
If we can answer any questions, feel free to reach out to us at 205-879-2447. Sounds like though you just wanted others to know about how your family was treated and that’s very important to share our stories with others.
Hope things are going better for you….
John Watts