Can the Bank still sue me if they have already foreclosed or repossessed property?by Victorianne C. Maxwell (Maxwell Law Firm, PLLC)
There are certain circumstances where a lender can sue a borrower/debtor for what is called a deficiency judgment.
When a lender forecloses on your real property or a car is reposed, typically the lender will mitigate their damages. They mitigate their damages by selling the property at auction (foreclosure sale, or auto auction). The Lender can sue the debtor for the difference between what the debtor owes the lender and what the lender received at auction, if the amount received at auction is less than the debt. This is called a deficiency judgment.
What should you do if you are being sued by a creditor? Contact a Debt Defense and or Bankruptcy Attorney immediately. Why? Because there is a big chance that the Attorney can prevent the judgment and or save your other property from seizure. Creditors can sell your other property once they receive a judgment and have a writ issued to satisfy this judgment. A Bankruptcy Attorney can also most likely save you from foreclosure and repossession if you contact them in time.
Maxwell Law Firm, PLLC advices clients on bankruptcy laws, assists clients with filing for bankruptcy, representation in bankruptcy court, loan modifications, defending against foreclosure, garnishments, deficiency judgments, help with medical bills, and payday loans. You can contact them at 704-780-1100
California Bankruptcy Attorney Attorney Chirnese L Liverpool assists debtors in the Los Angeles Area 818-714-2200.