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  1. #1
    bebik22 is offline Junior Member
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    Deficiency Judgment on South Carolina Investment Property

    What is the name of your state? South Carolina and New Jersey

    Here is my issue, I bought land in South Carolina 2 years (as investment) and not able to sell it so far. I am thinking of doing foreclosure on it but afraid that bank may put a lien on my primary residence in NJ.

    Here is my question: if I do foreclosure and will the bank go after deficiency judgment?
    Also how likely is it if bank gets a deficiency judgment, will they collect it or just forgive dept and go for 1099?

    Did any one have this type of situation? If yes, did bank go after you assets like money in the bank or put a lien on your primary residence?

    I do understand that bank CAN go after your assets, but my question is how often is it done?

    Here is information that I found so far ([url]http://www.foreclosure.com/statelaw_SC.html[/url] ) but it would be nice to hear from some one who already did it or doing it now.

    Please no general answers, be specific as you can.

    Thank you all
    Last edited by bebik22; 06-10-2008 at 11:17 AM.
  2. #2
    dmiller12 is offline Member
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    if I do foreclosure and will the bank go after deficiency judgment?
    They would be within their rights to go after a deficieny judgement but whether they do or not is totally up to them.

    Also how likely is it if bank gets a deficiency judgment, will they collect it or just forgive dept and go for 1099?
    Do you want this rated on a scale from 1 - 10?

    [QUOTE][Did any one have this type of situation? If yes, did bank go after you assets like money in the bank or put a lien on your primary residence?/QUOTE]

    Once they have the judgemnt they'll get their money anyway they can which includes but is not limited too freezing your bank accounts, garnishing wages, intercepting tax refunds etc..

    I do understand that bank CAN go after your assets, but my question is how often is it done?
    Would you like a percentage or the actual number of times this has happened because that will take a long time?

    Please no general answers, be specific as you can
    They'll come after you for the rest of your natural born life until they recoup every red cent they lost. Is that specific enough?
  3. #3
    bebik22 is offline Junior Member
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    1 more question

    Dmiller12 are talking from experience or you just ďbelieveĒ that this is the approach bank will take. Do you know someone that had these issues or you have work experience related to my question?

    Just trying to understand what exactly your expertise on this topic.
    In any case thanks for your answer
  4. #4
    dmiller12 is offline Member
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    So in addition to demanding specific answers now you want a resume to qualify your FREE advisor???
    Last edited by dmiller12; 06-10-2008 at 05:13 PM. Reason: punctuation
  5. #5
    FlyingRon is offline Senior Member
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    If you want a second opinion, I pretty much agree with dmiller except it's actually worse. They won't "FREEZE" your bank account, they'll suck the money out of it.
  6. #6
    bebik22 is offline Junior Member
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    Exclamation deficiency judgment question

    I been reading this forum and I see tons of people asking if bank will go after then if they foreclose but I donít see any one that had actually bank go after them. Is there anyone who already foreclosed and had a Bank go after their assets to satisfy the deficiency judgment? From what I understand banks donít waist time and money on doing that. Can anyone speak on this from personal experience?
    Thanks
  7. #7
    LindaP777 is offline Senior Member
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    Quote Originally Posted by bebik22 View Post
    I been reading this forum and I see tons of people asking if bank will go after then if they foreclose but I donít see any one that had actually bank go after them. Is there anyone who already foreclosed and had a Bank go after their assets to satisfy the deficiency judgment?
    LOL! That's because the ones offering help are making our house payments, so we have no personal experience with being foreclosed on!
    Those that come here for help are looking solely at their own question for answers and not likely to answer yours.
  8. #8
    tranquility is offline Senior Member
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    In order to deduct the loss, tax law requires the lender in a partially-worthless business bad debt to satisfy the IRS the debt is recoverable only in part. It uses the same criteria (although different rules) as a normal bad debt and is a question of fact, requiring consideration of all pertinent evidence, including the debtor's financial condition and the value of any security for the debt.

    Say a person has two properties. One is recourse and upside down and the other has a lot of equity. What do *you* think a bank would be *required* to do under the law in order to deduct the loss of the difference between the amount owed and the value of the property on the recourse debt?

    It depends on the amount of money we're talking about, the amount of the equity in the other property, how much other assets are owned by the borrower and the like. No one can answer what a bank will do until all the facts are out. We only know what they must do if they want to not pay taxes on the money they lost in the bad debt. Of course, they also must issue the 1099 if the loss exceeds the statutory amount if they want to deduct the loss.
  9. #9
    LindaP777 is offline Senior Member
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    Excellent explanation!
  10. #10
    bebik22 is offline Junior Member
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    interesting article

    [url]http://www.foreclosurefish.com/blog/index.php?id=259[/url]
  11. #11
    tranquility is offline Senior Member
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    Irrelevant article. What the author claims confirms what I wrote. Remember that most people lose their house in foreclosure. With little other assets, the bank cannot see the use of continuing collections in the fact-based calculation I mentioned. That calculation is REQUIRED BY LAW in order to deduct the loss. Banks don't have to lose more money to take the deduction, but they must limit the deduction if possible. So, in the fact based calculation of:
    consideration of all pertinent evidence, including the debtor's financial condition and the value of any security for the debt.
    What is the likelyhood the bank can get the money from you in other ways?
    How much are we talking about as a deficency?
    How much are your other assets?
    How much value do you have in your home unprotected by homestead?

    There is a compliance officer at the bank who will look at this in every foreclosure. True, he won't spend a lot of time calculating things down to the penny, but, at a glance, what do you think they should decide in *your* situation? Can they get their money or no?

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