Posted by raelynn mitchell on May 23, 1999 at 22:31:05:
I was under the impression that the deficiency situation and whether or not the bank would pursue it all depended on whether the loan was a purchase money RE loan or a 2nd/3rd/or refinance/etc. Some states have laws that say yes, the owner’s deficiency can be pursued after the sale, others have laws that say no, and some may generate a “maybe” or “it depends”.
I’m not well versed in foreclosure law, however, and as you mentioned, the bankrupcy may change things.
Other things in the equation could also be:
Is it HUD or VA (if it is, bank goes to HUD/VA and says “pay us” and gets their money that they are short from the foreclosure sale direct from the gov’t.)
The language in the mortgage loan and if it was “personally guaranteed” or if assets other than the home were pledged (as in a blanket mortgage).
I had been told in the past that bankrupcies were a good place to get properties because, like in your situation, so many people do NOT know the answer and how the bankrupcy changes things, so those who DO know have little if any competition.
But as you may know, I’m not an expert in foreclosure law. Still learning more every day.