Foreclosures are No Guarantee that Headaches are Over

By Aleshia Altizer

For those on the cusp of foreclosure, it's important to understand the details of the situation fully because troubles may not end after a foreclosure. According to a CNN Money article, if there’s a difference between what’s owed on a home and what the bank would get at auction, the bank could pursue a deficiency judgment against a former homeowner, even years after the foreclosure.

Whether it was unemployment, a job transfer, or just struggling under too big of a loan, if a borrower can no longer sell their home for what they owe and are forced to short sell or foreclose, they could face a deficiency judgment.

The article also advises borrowers to seek legal advice if they have any doubts about what their risks are. This is so important because laws vary by state, and there are multiple ways an attorney can advise a client regarding foreclosure. It is also important to never sign any paperwork without fully understanding it. Pre-Paid Legal members should contact their Provider Attorney the moment a concern arises so the attorney can go over the situation, examine any related documents, and offer sound legal advice.