Can I be sued for a deficiency from a deed in lieu of foreclosure?
Can I be sued for a deficiency from a deed in lieu of foreclosure in Alabama?
We’ve talked in other articles about if you can be sued for a deficiency, and about if you can be sued for a short sale in Alabama.
The answer is yes to both of those questions.
What about if you do a deed in lieu of foreclosure?
This is where you take your deed and give it to the mortgage company and say, “I’m giving this to you in lieu of (instead of) foreclosure.”
What happens if you do this?
Many people will say, as they do with the other options, that you can’t be sued for a deficiency.
That simply isn’t true.
You have to look at the agreement.
What does the deed in lieu of foreclosure say?
That you’re still liable?
That you still owe a deficiency?
It could be that you owe $200,000, you give them the deed, they sell it for $150,000, and you owe the $50,000.
You need to know the answers to these questions before you do a deed in lieu of foreclosure.
If you have not yet agreed to it, call us if you live in Alabama and we can help you evaluate if this is a good idea for you.
If you’ve already done the deed in lieu, you may be wondering what you can do.
Maybe you’re getting calls or letters from a debt collector.
Pull out your documents for the deed in lieu of foreclosure.
Look at your deed in lieu of foreclosure and see what the agreement says.
If you’re in Alabama, feel free to get in touch with us.
We would be glad to help you with any questions you may have.
You can reach us by phone at 1-205-879-2447.
Or, if you prefer, you can fill out a contact form and we will get in touch with you quickly.
We look forward to chatting with you.
Thanks for reading, and have a great day!
P.S. If you’re facing foreclosure, you should look into laws such as RESPA, the FDCPA, and the FCRA.
You should also make sure that you know the major secret that mortgage companies do not want you to know about.