Ask Bill your personal finance question

Collections Advice on Deficiency Judgment

I own two properties. If the lender forecloses on one is my other property in jeopardy for collections?

I have 2 properties... 1 in New Jersey (vacation home), 1 in Pennsylvania(primary)... the property in NJ is 4 months late on payments (I am currently on a loan modification).... the property in PA is current on payments.... I can no longer afford the two properties and don't want to lose the house in PA.... if they foreclose on the house in NJ (which I see as the only option because even though it is on the market it is not selling) can anything happen to my property in PA even if I am current on payments?

Read full question
Bill's Answer
3.3
/5.0
(4 Votes)

Bills.com | Find Learn Save

Let us assume for the sake of argument the mortgage holder on the New Jersey property forecloses, sells the property at auction, and there is a resulting deficiency judgment. The deficiency is like any other unsecured debt and as such is legally identical to credit card debt, medical debt, or a payday loan.

See the Bills.com resource Collections Advice to understand your rights and liabilities in the situation you described if you take no action to resolve the debt.

You have options for resolving the hypothetical debt. See What Are My Debt Consolidation Options? for more information.

If the New Jersey property was your primary residence, I would suggest you review the Making Home Affordable program.

I hope this information helps you Find. Learn & Save.

Best,

Bill

www.bills.com/

Get Debt Help!
3.3
/5.0
(4 Votes)

People also like to Read

Brad Stroh

Debt Relief Options | Compare which debt relief option is best between Consumer Credit Counseling Services and Debt Settlemen... Read more >>

Brad Stroh

9 do-it-yourself debt solutions, including how to stop a collector's calls, validate debt, dispute an error in your credit re... Read more >>

Mark Cappel

Get Out of Debt Free | The lowest-cost method of getting out of debt for free is bankruptcy. You have other options, too, and... Read more >>

Daniel Cohen

Review your debt consolidation options. Find the right way to pay off your debt. Pay attention to debt consolidation reviews ... Read more >>

Mark Cappel

Learn about credit cards. Find low interest credit cards. Understand how to use credit cards to boost your credit. Make sure ... Read more >>

0 Comments

1500 characters remaining
loading...