Can we be persued for the balance of our mortgage?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can we be persued for the balance of our mortgage?

We want to walk away from our house, I understand that it will wreck our good credit, but need to know what else can happen to us. We can still afford our payment, make a fair income, and have paid for vehicles.

Asked on February 23, 2011 under Real Estate Law, Idaho

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Idaho does allow what is known as a deficiency judgement: that is, a mortgage lender, after foreclosing the house and selling it at a foreclosure sale or auction, then applying the proceeds of the sale (less certain administrative costs) to the mortgaqe, may sue the homeowners for any remaining balance. So if you mortagage is, say, $200k, and your home is sold for a net of $150k, they could legally sue you for the remaining $50k. Whether the lender will or will not do this depends on many facts: how much you'd still owe; whether they think they can get the money from you (if you make a good income, they may feel that they can), and even "corporate culture"--some lenders take a harder line than others. Overall, deficiency judgments are NOT sought more often than not, but the lender has the option to seek one if it wants.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption