What happens to the balance of my loan after a foreclosure?

When a foreclosure occurs in California, the lender can sue the homeowner for the remaining balance of the loan. If the lender is successful in collecting the remaining balance, it is referred to as a deficiency judgement. The lender can also use other means to collect the remaining balance, such as garnishing the homeowner’s wages. In California, if the fair market value of the home is less than what is owed on the loan, known as loan deficiency, then the lender can pursue the deficiency judgement. Under this law, the lender can sue the homeowner to collect the remaining balance, no matter how many payments are made. The amount of the deficiency judgement is the amount of the loan minus the sale amount of the home. In California, if the lender receives a deficiency judgement, then the homeowner can still be liable for the outstanding debt in the form of a promissory note. This promissory note, which is written by the lender and signed by the homeowner, is used to collect the remaining balance. The good news is that California offers certain protections from foreclosure, such as the Homeowner’s Bill of Rights. This law is designed to protect homeowners from improper foreclosure practices and can help them keep their homes. It also stops lenders from pursuing deficiency judgements against homeowners. To sum up, when a foreclosure happens in California, the lender can pursue a deficiency judgement to collect the remaining balance of the loan. The homeowner can also be liable for this debt in the form of a promissory note. Fortunately, the state also offers protections to homeowners with the Homeowner’s Bill of Rights.

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What happens to the balance of my loan after a foreclosure?

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