Forty-one states and the District of Columbia permit lenders to sue borrowers for mortgage debt still left after a foreclosure sale. The economics of today's battered housing market mean that lenders are doing so more and more.
Foreclosed homes seldom fetch enough to cover the outstanding loan amount, both because buyers financed so much of the purchase price—up to 100% of it during the housing boom—and because today's foreclosures take place following a four-year decline in values.
Saturday, October 1, 2011
Banks Collecting Mortgage Loan Deficiencies After Foreclosures From Borrowers
From The Wall Street Journal"House Is Gone but Debt Lives On" by Jesse Silver-Greenberg:
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Mortgage loans are one of the most vital necessities in today's world. This is the only way a middle class family or the average consumer can afford to buy a house and on the other hand he/she has to pay a massive amount of money while paying off the mortgage.
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It is require for home owners to pay their mortgage fees on time to avoid foreclosure crisis.
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