What to do if a foreclosed home judgment was not updated?
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What to do if a foreclosed home judgment was not updated?
My husband’s home foreclosed 5 years ago. It was sold for a substantial amount less than what
was owed. When reviewing the case through the online court system, it still shows a judgment for the total amount owed; it does not reflect a new balance minus the amount it sold for. Should this have been updated? Also, it is not showing nor have we been notified that any deficiency judgment has been filed.
Asked on April 11, 2019 under Real Estate Law, Delaware
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
A judgement is not updated when it is partially paid, whether by the defendant or by the sale of a foreclosed home. That does not mean that your husband owes more than the remaining balance (judgment less amounts realized from the sale), but the judgment itself in the court system is not updated until and unless is paid in full (or the creditor agrees to take less than full payment as payment in full) and a stipulation is filed in court that the judgment has been "satisfied." It is all or nothing in terms of paperwork in the court system: either it has been satisfied or it has not been. That stated, again, the creditor can't seek more than the total amount of the judgment, so if, say, the original judgment was for $200k but $140k was realized by the sale, they are only entitled to another $60k.
There is no law requiring the creditor to seek a deficiency judgment: they have the right to, but are not required to do so. There would only be notice of one if and when they seek one.
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