Foreclosure defense attorneys are all too aware of the possibility for deficiency judgments. With nearly a quarter of U.S. mortgage debtors under water, many foreclosed properties sell for far less than the outstanding debt, leaving the former homeowner on the hook for tens of thousands of dollars (or more).
Lengthy statutes of limitations in some states mean these actions come as an ugly surprise to those who have lost homes to foreclosure, often just as they’re beginning to get back on their feet. Bankruptcy, of course, offers a remedy for qualified homeowners, but many aren’t aware when the foreclosure occurs that they may be on the hook for huge sums of money down the road.
Boot Camper Margery Golant is quoted in this article about foreclosure and deficiency judgments.