if i were to default on a conventional home loan, am i liable for any money
Answered on: 1/02/11, 7:30 pm by Cameron Kelly
The answer is that "it depends", and I would strongly recommend that you talk to someone about your situation prior to making a decision.
First of all, a bank can choose to foreclose one of two ways in Minnesota, and their decision on which method to use is critical to the answer to your question. Basically, whether you owe money will depend on whether a bank can seek a deficiency judgment (a judgment for the difference between the property value and the amount you owe on your mortgage plus the bank's fees and costs). If the bank chooses to foreclose by advertisement (the easy way), they can not seek a deficiency judgment. If they choose to foreclose by action (commencing a court action), then they can seek a deficiency judgment.
Secondly, if you have a second or third mortgage, or other liens against the property, these lien holders can often seek a money judgment.
Because there are so many variables, I usually suggest that it is worth talking through the possibilities prior to making a decision. If you would like to speak with me, please feel free to contact me. Cameron Kelly Law, LLC
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