Foreclosures Help Information

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Mortgage Foreclosure Deficiency

Question: After Foreclosure in Florida,What can the deficiency judgement take?

If you get defiency judgement in Florida for an investment property , can they take your personal assets like savings and a car that is already paid off? Also can they take money from your paycheck everytime you get paid?
Also what happens to your other accounts like credit cards and if you have a primary residence can they take that?
Basically, if after foreclosure on my investment property I continue paying all my other bills on time such as my credit cards , my other mortgage then can I rebuild my credit in 2 years.

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Answer: A deficiency judgment can be collected in the same manner as other judgments (wage garnishment, siezing bank accounts, etc). They can't mess with your credit cards.

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California Foreclosure Law Deficiency Judgment

The prospect of a foreclosure can be daunting and painful, it is crucial to be made aware of your state’s laws and guidelines to best serve your interests, regardless of whether you wish to remain in your home or not.  Following is a list of information on California foreclosure laws; other states can be researched on our website as well.
Quick Reference:
• Judicial Foreclosure available:  Yes
• Non-Judicial Foreclosure available:  Yes
• Primary Security Instruments:  Mortgage, Deed of Trust
• Timeline:  Typically 120 days
• Right of Redemption:  Varies
• Deficiency Judgments Allowed:  Varies by process

In the State of California, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process. However, an appraisal of the property must be conducted prior to the scheduled date of foreclosure.  It is important to note that a judicial foreclosure in the state of California involves the filing of a lawsuit to obtain a court order to foreclose, wherein property is auctioned to the highest bidder.
In the event of a non judicial foreclosure, a power of sale clause exists within the mortgage or deed of trust in default wherein the borrower has pre-authorized the sale of the property in the event of default.
Most states have specific power of sale foreclosure guidelines, for more on the state of California foreclosure proceedings please visit: www.mitigationonlineconsultants.com today.  Mitigation Online Consultants are experts in the field of foreclosure prevention and mortgage loan modification.
In any foreclosure under a mortgage or deed of trust in California, the property must sell for not less than two-thirds of the appraised value. If it does not, then it may be offered for sale again within twelve (12) months. The second sale may be to the highest bidder without reference to the previous appraisal.
A note regarding Deficiency Suits: A lender may not bring a deficiency suit against a person who lost a property that is 2.5 acres or less at a foreclosure, provided the property was a single one-family or a single two-family dwelling. This is so even if the high bid at foreclosure was less that the balance due on the loan. However, in foreclosures against other types of property, a deficiency suit is allowed, but is limited to the difference between the balance owed and the fair market value of the property, and then only if the suit is brought within ninety (90) days of the power of sale foreclosure.

About the Author:

Mitigation Online Consultants, are a team of highly skilled professionals who have been trained and experienced in the real estate, mortgage banking and financial services industries.Here at Online Mitigation Consultants we specialize and focus on the two types of mitigation: Loan modification and Deed in Lieu of Foreclosure.

Source - Foreclosure Laws in California

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Arizona Foreclosure Law Deficiency

Redemption rights in foreclosure actually only come after the homeowner's property is lost through judicial sale or foreclosure. The owner can redeem by paying the lender the outstanding principal and interest due, plus the lender's costs in foreclosure. Once the home has been lost, some states allow the homeowner the right to "reclaim" his home for varying periods.

Because of the power the banks have for foreclosing, some states decided that that homeowners should likewise have the right to reclaim their home if their personal circumstances turnaround within a given time period. The homeowner will have to petition the court for a hearing to get his home back and show "proof of funds" that he is able to repurchase his home for what is owed plus all the associated costs of the foreclosure.

Proof of funds can either be cash in the bank or a pre-approved letter from another lender that is willing to fund his purchase. The new lender does not have to be a bank, but can be a "hard money lender" who will charge the homeowner a much higher interest rate and closing points and will only carry the loan for year or so.

These hard money lenders are sometimes called "predatory lenders". The amount they will lend is based on the "quick sale" value of the property. That gives them an equity cushion in case they are forced to again foreclosure upon the property to recoup their loan money.

The homeowner who lives in one of the states that has long redemption periods, can solicit local hard money lenders or real estate investors to exercise his redemptive right if there is equity in the home that can be retrieved by fixing the property and selling it in the retail market.

These are called Equity Agreements and are common in the real estate business. Equity Agreements stipulate who gets how much of the proceeds from the sale, who pays what expenses and who will be dong the work. Remember, if it isn't in writing in the Agreement, it isn't going to happen. If you have a question, ask an attorney before you sign anything.

Here are the states that have no redemption period: Arizona, Connecticut, Delaware, Hawaii, Illinois, Iowa, Louisiana, Massachusetts, Mississippi, Montana, New Hampshire, New York, Oklahoma, Pennsylvania, South Carolina, and Texas. While these sates have no redemption privileges, it is possible to bring legal action against the bank with regard to deficiencies in the foreclosure proceeding or mortgage irregularities. This is seldom worth the effort.

States that have one year redemptive rights include: Alabama, Idaho (either 6 or 12 months), Kansas, Kentucky, Maine, North Dakota (6 or 12 months), and Wisconsin (possibly to 12 months).

The other states vary greatly because of specific terms in the mortgage or deed of trust contracts but range from 10 days to 240 days. It is imperative that become familiar with your local foreclosure laws because they vary greatly from state to state, and the sale or auction practices vary from county to county.

About the Author:

Mark Walters is a third generation real estate investor and founder of
CreatingWealthClub.com
. For a limited time Mark is offering his big guide to finding hard money loans for real estate investing free.
Free guide to private money loans.
 
http://www.FindPrivateMoney.info

Article Source: ArticlesBase.com - Foreclosure Redemption Rights Explained