February 28, 2010

~~Getting sued after walking away

By Timothy Stull (http://www.fresh-start.co)

I have a number of clients approaching me with some very serious problems ~ they are getting sued for big $$ ~ big $$ on a house they walked away from 3 years ago. They thought their problems were left behind….when they walked away from the old house….leaving the troubles to the bank. Well now the bank is knocking at the door and they want the deficiency balance money due. The deficiency balance is defined as the shortage between the loan balance and the auction price. The two recent cases I have seen have had large balances ~ 90k & 125k. To make matters worse ~ both parties are being sued collection law firms that were hired by vulture debt buyers. The vulture debt buyers waited for bank to sell the debt for pennies on the dollar and then hired an attorney to file suit. Talk about a lucrative business model ~ one that will be growing greatly over the coming years. The debt buyers waited for the debtor to back on their feet and then whammo ~ sue them over the large debt ~ that is justly owed. There are numerous things you can do to protect yourself from falling into this trap. Loan modifications & properly executed deed in lieu’s are great options. You also have options to apply proper legal defense if you are sued over a deficiency balance. All of these options need to be discussed with an expert in the distressed credit markets. I have 22 years experience in the distressed credit markets and can be reached at 877.291.7011.

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