Phone Call Us 414-326-9231
Toll Free 866-678-9352
Text Us 414-277-7742

People who have been foreclosed upon may still owe money

Wisconsin residents who have had their homes foreclosed upon may think that their nightmare is over, but deficiency judgments can be brought against people years after their home has been repossessed. If a home is foreclosed upon, the bank may not be able to sell the home for enough money to cover what was owed on the mortgage. This amount, along with interest, is a deficiency balance. Unless an individual files for personal bankruptcy, the balance owed may follow them and even result in garnished wages.

Deficiency judgments are a fairly new occurrence because before the housing market crash that began in 2008, most lenders were able to make up loan balances when they sold a foreclosed property. Today, many individuals are deeply underwater on their homes, and the housing market has still not recovered. The rate of foreclosure in the last few years has been fairly high, and this has led to banks using these judgments as a way to make up for lost profits.

In addition to the extensive length of time that lenders have to file these judgments, as much as 36 years in some cases, the interest rates on these debts are enormous and have been adding up for years. This means that people could end up being hundreds of thousands of dollars in debt, even after they have lost their homes.

One way that people can avoid these onerous judgments is to file for bankruptcy. In addition to preventing a foreclosure from coming back and haunting individuals years later, filing can also eliminate most unsecured debt. A lawyer could help someone throughout the filing process and help them understand the long-term impact of bankruptcy.

Source: Washington Post , "Lenders seek court actions against homeowners years after foreclosure", Kimbriell Kelly, June 15, 2013

No Comments

Leave a comment
Comment Information

Contact Our Milwaukee Law Firm

Reach Miller & Miller Law, LLC, online or call us at 414-326-9231 to schedule a free initial consultation. Our law office also provides Spanish language services. Se habla español.

To schedule an initial consultation, call 414-326-9231 or contact Miller & Miller today.

Free Case Evaluation

* indicates required field

Milwaukee Office
633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-326-9231
Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Law Office Map

Kenosha Office
6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 414-326-9231
Phone: 262-326-1669
Kenosha Law Office Map

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 414-326-9231
Phone: 262-261-0665
Brookfield Law Office Map

Madison Office
2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 414-326-9231
Phone: 608-260-7133
Madison Law Office Map

Glendale Office
6001 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-326-9231
Phone: 414-973-8662
Glendale Law Office Map

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Phone: 920-280-3838
Map & Directions