Being sued for deficiency judgement

Hi Mildred

If the company wins the judgment case, you will have to pay the whole amount without any choice.

It is better to settle the matter out of the court with your creditors so that you still have some available options to you from your creditors.

Negotiate with your creditors and insist them for a payment plan. Hopefully, they will be able to arrange something for you.

What is the difference in a deficiency judgment and a judgment...Can judgments be settled by making affordable payments?

Hi MyHeart

Judgment is the legal action that a lender can take against a consumer on failure to recover the total debt amount.

As the term deficiency clearly defines some shortage, it is basically the difference between the actual debt amount and the amount recovered from selling the car. Before any car is put into auction, the legal proceedings are governed by the Automobile Sales Finance Act. The lender has to follow each and every stated law very minutely and if he fails to follow any of them, the repossession will be termed as void and the consumer won't have to pay the amount.

Deficiency judgment is served to the consumer after the lawsuit has been filed. Legal papers will be served to the consumer and he should immediately get in touch with his lawyer. The consumer will be asked to file his defense within 30 days. If the court does not hear from the consumer within this period, the lender will win this judgment by default and you might have to pay such a huge amount that you may not even owe.

Making the situation worse, the default judgment and the repossession will appear in your credit file and will cause a complete damage to your credit identity. There will be problems in acquiring new credit, buying new property, even getting new jobs.

Regards
Roxette

I sold my house on a short sale and now the bank is suing me for the loss. Is it too late to try and negotiate a settlement? I don't have an attorney and can't really afford one. Should I write a letter to the court and try and explain my situation. I don't dispute the fact the lender was paid less than what I owed, so what kind of defense could I put up?

Appreciate any help.

I'm in the same situation. If you found anything to help, please contact me at personal information removed...mod
Thanks!

How much does it cost to consolidate?

I am a co-owner only on the deed of my mothers foreclosed house, i was never on the loan or mortgage.. can they come after me for the deficiency judgement amount?
I want to buy a house with my husband, but i am afraid that they may take any equity from our home.. He thinks he should buy it alone?
Any advice would help!

most banks will take a one time settlement payment of 10% of total balance owed. start by offering 5% and go no higher than 15%. REMEMBER: no matter what you offer, the bank will always try to get more. so keep your bid low...

no bank expects to collect on 100% of a deficiency balance. the going rate is 10% of total balance due...if you dont believe, ask around to anyone who has delt with this...