Which states are non-recourse?
There are currently 12 non-recourse states: Alaska, Arizona, California, Connecticut, Hawaii Idaho, Minnesota, North Carolina, North Dakota, Texas, Utah, and Washington.
Is Florida an anti deficiency state?
Florida doesn’t have a law preventing a bank from getting a deficiency judgment after a short sale. However, if the property is owner-occupied and residential, the deficiency is limited to the difference between the outstanding debt and the fair market value of the property on the date of sale.
How do I know if I have a non-recourse loan?
How do I know if I have an existing recourse loan or nonrecourse loan? In most cases your original note and mortgage should indicate if the loan is recourse or nonrecourse, however, you can ask your lender to confirm the type of debt. You and only you can determine what type of loan is best for you.
Is Florida a single action state?
Florida law does not require a lender to elect to proceed separately against real and personal property. The lender may proceed in one action against both real and personal property collateral given for its loan.
What states have a one action rule?
Learn about the one action rule in California and Utah. If you fall behind in your mortgage payments, California’s “one-action rule” says that your lender can only take one action against you, whether it is to conduct a trustee’s sale, sue on the promissory note for the balance of the debt, or judicially foreclose.
What is a one action rule?
A one-action rule typically requires a lender to complete a judicial or non-judicial foreclosure on the real property collateral before it can obtain a deficiency judgment against the borrower or take other action to collect against a borrower’s assets.
Does California allow deficiency judgments?
In California, deficiency judgments are only permitted after a Judicial Foreclosure, and only if the anti-deficiency statute does not apply. The clear language of the California statute provides that deficiency is not permitted on purchase money loans.
Does Illinois have a one action rule?
The Supreme Court of Illinois recently held that a bank’s suit for breach of a promissory note — a third attempt to collect from the same defendant borrowers based on the same default of the promissory note — was barred by Illinois’ ‘single refiling rule. ‘
How long does a deficiency Judgement last in Illinois?
If the borrower redeems, the in rem deficiency judgement preserves the lender’s right to a lien on the property for the debt balance that remains. In Illinois, the redemption period for residential mortgages is 7 months after the date of complaint, or 3 months after the judgement is served, whichever is later.
Does Illinois have deficiency Judgements?
The two types of deficiency judgments in Illinois are an in personam deficiency judgment and an in rem deficiency judgment. In personam means that the judgment is against the borrower, and in rem means the judgment is against the property.
How do you settle a deficiency balance?
In your letter offer to settle the deficiency balance for 20 percent of the balance. Continue negotiating through letters if the creditor balks at your initial offer, or call the lender if you’re comfortable negotiating over the phone. Increase your offer once a month until you have a deal.