I lost my home 4 years ago through foreclosure the bank where I was financed has obtained a judgement for me to pay the balance of 39,000 or my wages will be garnished I can't do this I lost the home and that wa spainful enough now I am re living it and very worried about my income and my job because of this money stating I owe how do you still owe when they take your home and all and you don't have that
2 Answers from Attorneys
Dear Foreclosure Victim: Evidently, you had no legal representation or advice. You may now have to file for protection either through bankruptcy - Chapter 7 (direct bankruptcy), or other forms of asset protection, to immediately stay all legal action against you for what is known as the deficiency judgment, i.e the amount still due the lender on the mortgage you signed ( as a contract)after they sold the property for the best price they could obtain, in the present masrket.
I urge you to retain legal counsel ASAP (without delay!!!) to advise and assist and guide you throught this terrible ordeal, and to attempt to protect your other assets, including your income from your job, before the lender files suit.
Good luck, Sincerely, J. Norman Stark
I have provided a copy of Ohio statute which limits collection on a deficiency judgment as a result of a mortgage foreclosure to two years from the date the foreclosure sale was confirmed. You may need to seek counsel to assist you if the lender is still pursuing this deficiency, unless you signed a waiver.
2329.08 Limitation of enforcement of deficiency judgment - waiver - pending actions.
Any judgment for money rendered in a court of record in this state upon any indebtedness which is secured or evidenced by a mortgage, or other instrument in the nature of a mortgage, on real property or any interest therein, upon which real property there has been located a dwelling or dwellings for not more than two families which has been used in whole or in part as a home or farm dwelling or which at any time was held as a homestead by the person who executed or assumed such mortgage or other instrument, or which has been held by such person as a homesite, shall be unenforceable as to any deficiency remaining due thereon, after the expiration of two years from the date of the confirmation of any judicial sale of such property completed subsequent to the rendition of such judgment. Any execution issued upon such judgment, or any action or proceeding in aid of execution, or in the nature thereof, or to marshal liens, commenced prior to the expiration of such two year period, shall not be affected by this section. This section does not affect any action or proceeding in the nature of a creditor's bill, commenced within such two year period, to subject the interest of the judgment debtor in any property owned at the date of such judgment and concealed with intent to hinder, delay, or defraud creditors.
This section may be waived by an instrument in writing, executed by the judgment debtor within such two year period, but such waiver shall not be effective unless within such two year period, such waiver is filed in the office of the clerk of the court in which the judgment was rendered. Upon the filing of said waiver such clerk shall enter a memorial thereof on the docket in which the judgment was rendered.