Deficiency Judgement

We do have a lawyer working on this but I want a 2nd opinion to be sure. In December of 2008 our house was foreclosed on and sold. My husband had lost his job for about 6mnths, we fell behind, and the bank realized they hadn't been putting enough money into the escrow account as was needed. My husband was the only one on the loan. While trying to work out a plan we were told we had only one option, which was to pay over $900 a month (original payment was under $300). We were told this was our only option because I was not on the original loan. When I brought up the fact that the loan payment would equal 50% of my husbands wages I was told that we had plenty of money because of my income too (which even with my income would have only left us with about $100 a month, if that after all of our bills were paid. We would not be able to save any money so as to not run into this problem again). We told them that that we could not do this, and the sale took place. (this was all in about a 3mnth period) We moved, the house was sold, we never heard anything again. Until a year and a half later. We recieved a letter from a collection agency stating that we owed money (which was actually more than the original loan). We contacted a lawyer who stated that in Nebraska they would have 90days to try to collect. Obviously it was more than 90days. We told the collection agency this and we never heard from them again. A year later we had another collection agency send the same thing. We told them the same thing again and we never heard from them again. Now over 4yrs later (not sure if this makes a difference but the loan was a USDA guaranteed loan though Tierone who then sold it to US Bank) the Treasury Department put an offset on our tax refund. I was never sure what kind of sale had been done, but when I contacted the Deed's office they told me that it was a trustee's sale. Now according to everything I found in Nebraska they have 90days after the sale to come after us. I was wondering if this is true even with a federally guaranteed loan. Also I found out that it was US Bank, who was the lender, that purchased the house at the sale, then turned around and sold it for a large profit from what they bought it for. Is it legal for the foreclosing bank to purchase the property? Also, the value of the house on the date of the sale is half of what they are coming after us for. How can they come after us for not only more than what it's worth, but also the profit they made from them reselling it was about what it was worth. I guess what I am really asking is can they offset my tax return like they did when it is not only way past the 90days but they didn't contact us until over a year after the sale. (and we have filed our taxes and gotten our returns every year before and they have never bothered them)

Posted by Jessica
from NE




1 Answer

0
I am sure they got a judgment at the same time they foreclosed. Judgments can be collected upon for years and the holder is well within thier right to garnish wages, tax refunds, etc.. if it was the USDA I am sure they would want the money they lost guaranteeing your loan and granishing a tax refund would be a good way to get it back. Props to USDA for proactively pursuing lost taxpayer money!

Answered by Moral hazard


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