How long does a deficiency Judgement stay on credit?
A deficiency judgment will remain on your credit report for seven years. If the judgment remains unpaid, however, your creditor may apply with the court to have the judgment renewed for another seven-year period.
What states allow deficiency judgments?
The following states have anti-deficiency laws: Alaska, Arizona, California, Connecticut, Hawaii Iowa, Minnesota, Montana, Nevada, New Mexico, North Carolina, North Dakota, Oregon, Washington, and Wisconsin.
What does no deficiency Judgement mean?
A deficiency judgment is an unsecured money judgment against a borrower whose mortgage foreclosure sale did not produce sufficient funds to pay the underlying promissory note, or loan, in full. A deficiency judgment is a court judgment that is a public record of the amount owed and by whom.
Which type of loans are exempt from deficiency judgment?
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.
Which theory is based on law of deficiency?
According to Say’s Law, a deficiency of demand for a good in the present can occur from a failure of the production of other goods (which would otherwise have sold for sufficient income to purchase the new good), rather than from a shortage of money.
What is meant by a deficiency disease?
: a disease (such as scurvy) caused by a lack of essential dietary elements and especially a vitamin or mineral.
When can a lender obtain a deficiency Judgement against a borrower?
Deficiency Judgments After Judicial Foreclosures in California. Deficiency judgments are generally allowed after judicial foreclosures in California. But the lender can’t get one if the loan was: used to buy a dwelling that consists of one to four units that’s owner-occupied (called a “purchase money” loan)
Which would be first in priority?
A general rule in property law says that whichever lien is recorded first in the land records has higher priority over later-recorded liens. This rule is known as the “first in time, first in right” rule.
What are specific liens examples?
Examples of specific liens include: -Property tax lien when taxes are not paid. -Mortgage lien when a mortgage is used in financing. -Mechanic’s lien when work done is not paid for. Specific liens are also called SPECIAL liens.
What is 1st lien position?
A first lien is the first to be paid when a borrower defaults and the property or asset was used as collateral for the debt. A first lien is paid before all other liens. A bank that holds the first mortgage on a property has the first lien.
Which of the following liens will take the highest priority?
Liens generally follow the “first in time, first in right” rule, which says that whichever lien is recorded first in the land records has higher priority than later recorded liens. For example, a mortgage has priority over a judgment lien if the lender records it before the judgment creditor records its lien.
What is meant by a lien theory state?
Definition: In lien theory states banks or mortgage lenders never retain title to the property. Instead, the mortgage lender holds a lien against the property. In these states, the deed stays with the borrower, and the lender places a lien on the property using a mortgage. The lien ends when the loan is paid in full.
What type of agreement is used to change the priority of liens?
So, the purpose of a subordination agreement is to adjust the new loan’s priority so that in the event of a foreclosure, that lien gets paid off first. In a subordination agreement, a prior lienholder agrees that its lien will be subordinate (junior) to a subsequently recorded lien.
When would a subordination agreement be appropriate?
A subordination agreement often comes up when a home has a first and a second mortgage, and the borrower wants to refinance the first mortgage. If you have two mortgages on your home and refinance the first loan, the refinancing lender might require a subordination agreement.
Which of the following liens does not need to be recorded?
mechanic’s lien. Which of the following liens does not need to be recorded to be valid? A statutory lien is created by statute. A real estate tax lien, then, is an involuntary, statutory lien.
What type of loan allows the interest rate to fluctuate depending on money market conditions?
Variable rate loans are loans that have an interest rate that will fluctuate over time in line with prevailing interest rates. They generally have lower starting interest rates than fixed rate loans, but the interest rate and payment amounts can change over time. Sometimes they are also known as floating rate loans.
What are the dangers of an arm vs fixed?
Rates and payments can rise significantly over the life of the loan, which can be a shock to your budget. Some annual caps don’t apply to the initial loan adjustment, making it difficult to swallow that first reset. ARMs are more complex than their fixed-rate counterparts.