collection agency demanding money after foreclosue

[bishopetmb]

What is the name of your state? tx . signed forms at closing table.live at our home until it was foreclosed.now i get acollection agency, saying they sold house and that i am responsible for the 27,000 that was left after sale.They said it was 1st and second mortgage when we sat at closing table . Am i responsible for what was left after they resold property ? thanks if you have any input.

[FlyingRon]

Yes, you are responsible for all the money you borrowed even if foreclosure occurs. When foreclosure doesn't pay it all, then they can come after you for the rest via other avenues.

[HUD-1]

It is called a "deficiency judgment". Some lenders are aggressive in pursuing repayment of these. Many people work out a short sale with the lender in an effort to avoid the deficiency judgment. Too late for that now for you, but perhaps they will accept less than full payoff of the 27k.

[bishopetmb]

Thanks for your help.How far can they go in collecting?

[Texas Pooh]

They will obtain a judgment against you for the deficiency amount, and then will collect on all non-exempt assets.

In Texas, they can garnish your wages; however, other assets are fair game (including amounts in bank accounts). Google Texas exempt assets and/or search this forum; there is lots of info.

[FlyingRon]

I'm sure Pooh meant to say they CAN'T garnish your wages in Texas.

Note that if you dump money from exempt sources (such as wages and Social Security) into a general bank account, that can be sucked up.

The guys over in the collections forum can give you advice on what could happen.