judgement foreclosure
how often do banks file a deficiency judgement after forclosure?
I have asked a question regarding this topic, but now I am wondering from my previous question and answers, does anybody know what factors in to the bank decision whether or not to proceed, after foreclosure, in filing a deficiency judgement? having lived in the house for 2 1/2 years, in an interest-only loan, the bank has gotten alot of money already and would not be “losing” anything, would that be something that is factored into the decision?
It’s not automatic, and I’ve seen posters on here that have stated that it doesn’t happen or it’s rare…and that is NOT true.
The banks make a calculated risk: Foreclosures are expensive, and the bank knows you have lost your only major asset, and if you can’t pay your mortgage, chances are, you aren’t paying your other bills either.
If it’s going to cost them more money to get a deficiency judgement than it’s worth they’ll just write it off and not seek a deficiency judgement, which leaves you with only the foreclosure on your credit.
If it is substantial, they will report it as a deficiency judgement, which usually forces people to file for bankrupcy right after a foreclosure.
Why Los Angeles foreclosures are a good investment
The economic downturn affected Los Angeles foreclosures in a large way. The prices of the dream house in places like Hollywood hills, Silver City and Mid Lake came crashing down compared to its eternally sky soaring prices since 2007.
After the first quarter of year 2007 the prices of the properties started to slither, showing a downward turn. By the last quarter of year 2008 it was evident that the prices were unusually going low and were expected to dip further. This by mid 2009 was well apparent.
This led to foreclosures of many mortgaged properties. Nevertheless other side of this catastrophe was that people could buy their dream homes at affordable cost. Los Angeles foreclosures were among the top to attract buyers in the state. Los Angeles being the second largest city in California and proximity to place like Hollywood makes it the most attractive and a dreamland for many.
At the moment in December 2009 economic scenario has shown signs of improving and foreclosed properties have dipped in number with its rates rising. But still the rates are not as high as year 2007.
Hence, it is a dream for anyone to possess a house in Los Angeles City and if it is through Los Angeles foreclosures it is all the more beneficial. By investing in Los Angeles foreclosures you can save up to 20 to 35 % of your money. After the economic downturn the costs of the houses have come down by 25% margin and if you can find a foreclosed house by government nothing like it as it will be cheaper than foreclosed houses by a bank or mortgage company.
An additional benefit is that rules and regulations of Los Angeles foreclosures are slightly different from the other cities. Here a home vendor cannot repossess back his property after 5 days of it being sold. But under deficiency judgement can trade in it back within one year after it is sold. The properties can be sold only via auction. Hence one does not need to run about finding information as it is easily available. The policy of right of redemption makes process of possession of the properties quicker. Also being a large city there is less employment quandary and the loan facilities are obtainable without difficulty. Even if one does not want to stay, renting the house or re-selling gets good returns.
About the Author
Iwona Filetti is a writer with an eye for detail. She writes on several niche after a thorough research and understanding, her motto is to give beneficial information so all sections of society benefit from her writing. For more details please visit Los Angeles Foreclosures.
What is a Deficiency Judgement?
