In New Jersey, personal deficiency judgments can be sought against a borrower who has gone through a foreclosure. These deficiency judgments can be up to $50,000. The lender will pursue collection of this amount if the borrower does not make the required payments. Source – scura.com
Affect Their Ability To Get Credit In The Future
Foreclosure is the legal process of repossessing a home from the owner. If the mortgage is greater than the value of the property, the lender may pursue a deficiency judgment against the owner. Ultimately, a deficiency judgment may cost the borrower the home and affect their ability to get credit in the future.
A deficiency judgment can last for the duration of time it takes to collect the deficiency. It may take longer if the borrower refuses to comply with the court order and/or if the lender takes legal action against the borrower. Since this process is time-sensitive and time-consuming, a home owner should consider hiring an experienced foreclosure defense attorney.
Personal Deficiency Judgments After Foreclosure in New Jersey: A deficiency judgment may be issued if a borrower has a home that is worth less than the balance owed on it. A deficiency judgment is a court order that a borrower must pay the lender the difference between the sale price and the mortgage debt.
Deficiency judgments can be avoided in New Jersey when a property is only one unit, has less than four units, and has been occupied by the homeowner for six months. In cases where a home owner has opted out of a deficiency judgment, he must notify the lender 10 days before the sale to avoid a deficiency judgment.