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Old 06-09-2009, 11:18 AM
 
Location: las vegas,centennial hills
10 posts, read 29,243 times
Reputation: 11

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Speedway my situation is different from you because I have a first and a second I bought in o6 for 270,000. house is now listed for 95000 in short sale bank denied first short sale for 140,000 in November and declined last week for 106,000. The second is what I'm worried about as they hit my credit in Feb. and they are old republic and would sue me based on my calculations and income stream. From my research its better to file bk before foreclosure so it read iib as a tradeline in BK, which is included in bankruptcy. The one thing you should pay if not filing BK is hoa because they can and often times sue you personally from mostof my research. In your case I would probably go through foreclose and hope they do not sue within the 6 month period andstart monitoring your credit report and try to find out through your mortgage servicer if there is insurance on the loan. They are filing suits in Las vegas for deficiency as you can go to loansafe.org and read about racoon a lady in Las vegas who is being sued for the defieciency by Mortgage guranty insurance, she is filing Bk according to her story.

Here is th Nevada Revised Staute stating 6 months for deficiency judgement.

NRS 40.455 Deficiency judgment: Award to judgment creditor or beneficiary of deed of trust.
1. Upon application of the judgment creditor or the beneficiary of the deed of trust within 6 months after the date of the foreclosure sale or the trustee's sale held pursuant to NRS 107.080, respectively, and after the required hearing, the court shall award a deficiency judgment to the judgment creditor or the beneficiary of the deed of trust if it appears from the sheriff's return or the recital of consideration in the trustee's deed that there is a deficiency of the proceeds of the sale and a balance remaining due to the judgment creditor or the beneficiary of the deed of trust, respectively.



I am not a lawyer just someone who does research before I deafault on big debt. Another good site for info if you decide to check into BK is BK forum.com and legalcosumer.com.

Take care and rember you are ot the only one in this situation and there are no debtors prison worst thing they could do is garnish your wages for 25% and possible get your bank account through offset be sure your bank you are using is in no way linked to the mortgage company in anyway.
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Old 06-09-2009, 12:32 PM
 
20 posts, read 72,631 times
Reputation: 15
Hi Canadian expert, thank you for the response.
So from what I read, you are in the line of a potential deficiency judement because you have a 2nd mortgage? If you only had a 1st, the chances are they wont go after deficiency?
What is the relevancy of mortgage insurance in the deficiency judement?
I look forward to your response.
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Old 06-09-2009, 05:02 PM
 
Location: South Dakota
733 posts, read 4,080,296 times
Reputation: 710
Quote:
Originally Posted by speedway121 View Post
What is the relevancy of mortgage insurance in the deficiency judement?
See this thread: Does paying PMI prevent a deficiency judgement?

Mortgage insurance will not necessarily prevent a deficiency. Get competent legal advice
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Old 06-14-2009, 07:10 PM
 
Location: CA
1,544 posts, read 1,842,972 times
Reputation: 1561
Quote:
Originally Posted by Wendell Phillips View Post
Here is a CPA Journal article on the tax consequences of foreclosure:
Mortgage Forgiveness Debt Relief Act of 2007 Reduces Negative Tax Consequences from Foreclosures
Hi Wendell Phillips -- THANK YOU for your excellent resources and info!! Can I ask you about our situation -- we are 'up-side-down' (home worth 209,000 now, loans 1st and 2nd total 317,000). We applied to a company that BUYS our loan from the current lender at 25-50 cents on the dollar and then re-fi's (?) a new loan back to us at about 85% of current value.... thus, if this is successful, our loan will drop to about 178,000. Would this be a circumstance of COD taxable income? I couldn't find this type question in the FAQ at IRS, nor the CPA Journal article. THANKS AGAIN.
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Old 06-14-2009, 11:25 PM
 
1 posts, read 6,215 times
Reputation: 10
I am in a similar position, except in the state of Missouri. I own 6 rental properties which are worth much less than what I paid for it. The main concern I have is whether I would be liable for a deficiency judgment in Missouri if I let my homes go to foreclosure. I live in the state of California and own my own home. We have been current with the mortgages so far, but are losing more money each month.

Does anyone know if lenders are going to the trouble of finding out what your assets are and going after the deficiency?
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Old 06-15-2009, 10:17 AM
 
26,589 posts, read 52,947,716 times
Reputation: 12963
Quote:
Originally Posted by chillerj View Post
I am in a similar position, except in the state of Missouri. I own 6 rental properties which are worth much less than what I paid for it. The main concern I have is whether I would be liable for a deficiency judgment in Missouri if I let my homes go to foreclosure. I live in the state of California and own my own home. We have been current with the mortgages so far, but are losing more money each month.

Does anyone know if lenders are going to the trouble of finding out what your assets are and going after the deficiency?
How are you losing money each month? The value of the property should ahve nothing to do with your cash flow on the property.
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Old 06-15-2009, 10:24 AM
 
4 posts, read 18,766 times
Reputation: 10
I am in a very similar situation as everyone in here- except that my loan was originated as a primary residence. I owe 185k can rent it for 900 and eat 700 a month. I have actually been renting it out for a year... but I cant continue taking that hit. I am thinking about foreclosing on the property to end the bleeding. I would pursue a short sale, but on paper I can afford the damned place. The unit comps are only selling as foreclosures in the 120k range. My biggest concern is foreclosing and having them pursue a deficiency judgement for 60k... and while I do not own any other property, I did get married last year. My wife owns a house with appx 40k in equity, but my name is not attached to the loan. Could they come after the equity in her home if they pursue a deficiency judgment? Does anyone think they will pursue the judgement? Its with Countrywide and I have been paying PMI since starting the loan in late 2005.
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Old 07-10-2009, 08:07 PM
 
20 posts, read 72,631 times
Reputation: 15
Quote:
Originally Posted by canadianexpert View Post
Speedway my situation is different from you because I have a first and a second I bought in o6 for 270,000. house is now listed for 95000 in short sale bank denied first short sale for 140,000 in November and declined last week for 106,000. The second is what I'm worried about as they hit my credit in Feb. and they are old republic and would sue me based on my calculations and income stream. From my research its better to file bk before foreclosure so it read iib as a tradeline in BK, which is included in bankruptcy. The one thing you should pay if not filing BK is hoa because they can and often times sue you personally from mostof my research. In your case I would probably go through foreclose and hope they do not sue within the 6 month period andstart monitoring your credit report and try to find out through your mortgage servicer if there is insurance on the loan. They are filing suits in Las vegas for deficiency as you can go to loansafe.org and read about racoon a lady in Las vegas who is being sued for the defieciency by Mortgage guranty insurance, she is filing Bk according to her story.

Here is th Nevada Revised Staute stating 6 months for deficiency judgement.

NRS 40.455 Deficiency judgment: Award to judgment creditor or beneficiary of deed of trust.
1. Upon application of the judgment creditor or the beneficiary of the deed of trust within 6 months after the date of the foreclosure sale or the trustee's sale held pursuant to NRS 107.080, respectively, and after the required hearing, the court shall award a deficiency judgment to the judgment creditor or the beneficiary of the deed of trust if it appears from the sheriff's return or the recital of consideration in the trustee's deed that there is a deficiency of the proceeds of the sale and a balance remaining due to the judgment creditor or the beneficiary of the deed of trust, respectively.



I am not a lawyer just someone who does research before I deafault on big debt. Another good site for info if you decide to check into BK is BK forum.com and legalcosumer.com.

Take care and rember you are ot the only one in this situation and there are no debtors prison worst thing they could do is garnish your wages for 25% and possible get your bank account through offset be sure your bank you are using is in no way linked to the mortgage company in anyway.
Hi Canadian Expert, what od you mean they can get my bank account? They cant do so without a judgement, right? If I have a loan through BofA and a bank account through BofA at what point in time can they just take the money coming into that bank account?
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Old 07-10-2009, 10:46 PM
 
28,383 posts, read 67,919,335 times
Reputation: 18189
Default I would be incredibly skeptical of this...

Quote:
Originally Posted by Zelva View Post
Hi Wendell Phillips -- THANK YOU for your excellent resources and info!! Can I ask you about our situation -- we are 'up-side-down' (home worth 209,000 now, loans 1st and 2nd total 317,000). We applied to a company that BUYS our loan from the current lender at 25-50 cents on the dollar and then re-fi's (?) a new loan back to us at about 85% of current value.... thus, if this is successful, our loan will drop to about 178,000. Would this be a circumstance of COD taxable income? I couldn't find this type question in the FAQ at IRS, nor the CPA Journal article. THANKS AGAIN.
Sounds like a scam. I know some lenders are stupid, but they are not going to give some yahoo essentially a "flip" for 35 + profit.

Have the firm checked out thoroughly before you give ANY info that they can't get from public records (and that includes details on your mortgage pay off, that is a valuable indentify theft item...) or your SS or bank account info.
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Old 04-15-2010, 11:14 PM
 
1 posts, read 3,680 times
Reputation: 10
How long does the banks have to file a deficiency judgement in Las Vegas? I hear they have up to 6 years. Does anyone know if banks are filing these judgements?
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