Deficiency judgments - Oregon home owners who go through foreclosure on their home or another property may be given a court order to repay any difference between the amount of money they owed and what the lender was able to recover through foreclosure sale. Because of the falling price of housing in Oregon, this amount can be quite a bit. If you are facing foreclosure or are in fear of losing your property by some other means, you may seek protection from such action.
Oregon Deficiency Judgments
Whether or not you will be held accountable to pay a deficiency judgment will depend on the terms of your mortgage and whether the value of your property is currently lower or higher than what you owe on it. A lender will try to assert a deficiency judgment against you in an Oregon foreclosure case if they think that the sale price of your property will not compensate them for your full loan amount.
Because deficiency judgment can be part of a real estate mortgage contract, if you have not agreed to be held liable for deficiency judgments, then you will not be liable. In essence, you must at some point sign something stating that you will be liable in the event of a foreclosure that leads to a deficiency judgment.
Under Oregon law, a deficiency judgment may not be obtained by a non-judicial foreclosure procedure. Deficiency judgments are also not allowed on residential trust deeds, whether or not the foreclosure proceedings are handled judicially or non judicially.
You can discuss the options available to you in a loan default with your lender and/or an attorney who handles Oregon foreclosure or bankruptcy cases.
You may be able to file bankruptcy on a deficiency judgment as with other unsecured debts. To find out more about the possibility of bankruptcy to help you with your debts, discuss your situation with an attorney who handles bankruptcy cases involving real estate deficiency judgments to make sure you are eligible for relief.
Getting Legal Advice
An Oregon attorney who handles foreclosures or real estate transactions can assist you with fighting against the imposition of a deficiency judgment. With an attorney there to help handle the convoluted paperwork and legal dealings involved in your situation, you will get through it with less stress. An attorney will handle your matter in a confidential and professional way.
