A Deficiency Judgment is where you have sold your house and the proceeds were insufficient to fully payoff your loan. In this situation, the bank will seek a Deficiency Judgment against you for the sums that were deficient in paying off your loan. This generally occurs with the Short Sale of your home.
Once the bank files an action for Deficiency, you will need to defend the action to avoid any judgment against you for the amounts sought in the lawsuit. Although the bank may not be able to Foreclosure on any property at this point, if the bank receives a judgment against you, it will be able to recover these amounts through very invasive post judgment procedures such as, garnishment of your bank accounts, garnishment of your wages, writs of execution on your personal property, which ultimately results in the Sheriff Office taking possession of your personal items and then selling them to pay off your debts, which could include, but not limit to, family heirlooms, jewelry, your car, even the clothes on your back. Most importantly, Judgments have a legal life of twenty (20) years, so a judgment will “haunt” your financial wherewithal for quite some time before expiring.
Our firm has a division that concentrates in post judgment law, and understands the scope of this area of law very well. If you are party to an action for Deficiency Judgment, or alternatively, you already have one secured against you, contact us now for your free consultation. We will work to negotiate with the bank and defend you against the action for Deficiency Judgment.