The lender has 90 days to start the motion for a deficiency judgement after a foreclosure sale and the market value of the property must be determined by the court.

In most cases, lenders do not pursue homeowners who have lost their homes to foreclosure and thereby incur a deficiency judgment. Although they may receive a 1099 income statement, lenders realize that they average person who looses their home to foreclosure, most likely will not have the funds to make due on a deficency judgment.

In certain states, most notably California, homeowners may not be liable for any deficiency on their mortgage, provided that the mortgage you have on your home is the original one you took out when you purchased the home. This "purchase money" security interest provision means that under California law, you are not entitled to pay deficiencies on your mortgage unless you have refinanced the mortgage since you bought the home. 2nd mortgages which were taken out at the same time as the "purchase money" or original mortgage may also be covered by this provision, however you must consult a legal professional for advice pertaining to your own situation.

In most states, the lender will not pursue obtaining a judgment to cure deficiencies unless the amount owed as a deficiency is very substantial. This is due primarily o the high cost of working through the courts ina judicial foreclosure. Most lenders prefer a non-judicial foreclosure.

If you are seeking information about a deficiency judgment, chances are you are looking down the barrel of a trustee or sherrif sale of your property during a foreclosure. You still may have options to refinance if you have equity in the property (30% or more), and if not you may consider other options. Contact us at 1-800-999-2489 x7972 for more information about foreclosure refinancing.

A deficiency judgment is a lien against the borrower when a foreclosure sale does not satisfy the amount of the mortgage.

Post Bankruptcy Credit Rebuilding - During bankruptcy your credit will be damaged from creditors updating account status as "account included in bankruptcy" These accounts will all have an unpaid balance. The first step in increasing your score after your bankruptcy is discharged is to update these balances with zero. Send out letters to the agencies indicating "included in bankruptcy, change balance to zero". Your score will increase for each account with this status change.

Secured credit cards are a great way to establish credit, as long as you are very careful about your use of the card. Review your charges and statements carefully. You do not want to exceed your credit limit or miss a payment.

Don't overextend yourself if you are getting additional credit cards through out the credit rebuilding process. Paying all your bills on time, eliminating false derogatories off your credit report, and not closing older credit card tradelines are a few of the ways to help you get a mortgage after bankruptcy.

Rent to Own centers are a great place to rebuild credit after bankruptcy. These stores often will approve a loan for anyone that has the income to pay the loan back and has good job time. You will end up paying more for an item then if you just bought it but the positive affects it will have on your credit score are worth it.

You can continue to rebuild your credit by getting a secured credit card. With these cards you deposit a set amount of money which you can then draw on using the charge card. These card's are reported to the credit bureaus the same as a regular or unsecured credit cards. Be sure to shop around to find the card with the lowest fees.

Continue to follow up and review your credit report. Many times, old accounts that have been cleared will continue to linger on your report. Take a look at your credit report periodically to make sure there are no errors.

When considering rebuilding your credit after bankruptcy its important to realize its going to cost a little interest. The secured credit cards will have higher rates, thats ok. One trick is to open a jewlry account with a jeweler that offers in house financing. Make sure they report to the credit bureaus prior to opening the account. Some offer the financing but don't report. You can finance a piece of jewelry for 6 months. Make sure you don't pay it off early. The entire goal is to have the item report positive on your credit.

When applying for a mortgage after a bankruptcy, the lender will closely scrutinize your payment since the discharge date. The lender wants to see a perfect payment history with no thirty day lates on your mortgage history or other consumer credit lines. If you have multiple late payments following a bankruptcy the lender may see this as a continuing pattern and it could be difficult to qualify for a mortgage.

Getting a cosigner is a great way to re-establish your credit rating after a bankruptcy. Get a small loan that you can easily repay, and make all the payments on time. Once this loan is paid off, go back to the same place and ask for another loan, this time on your own.