Learn about deficiency judgment before selling your Alabama home in foreclosure
Many individuals and families throughout the country face foreclosure. Alabama homeowners are no exception. If you own a home in Alabama that you can no longer afford, you’ll want to investigate Alabama foreclosure home selling requirements.
Selling your home in foreclosure can be a viable method for paying off your mortgage and protecting your credit. Selling your Alabama home in foreclosure can have a number of benefits, including:
- Paying off your mortgage before foreclosure happens
- Avoiding the stress related to foreclosure
- Preserving your credit rating
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It’s important to understand Alabama foreclosure home selling requirements. One of the biggest worries of Alabama homeowners selling in foreclosure is that the lender can sue you for the balance of your mortgage if the home doesn’t sell for enough to pay off your mortgage. This is called a deficiency judgment and it can result in a personal judgment. The lender could garnish your wages or place a lien on other property you own to collect the remaining debt.
You can take steps to avoid a deficiency judgment when selling an Alabama home in foreclosure. Try to work with your lender to negotiate an agreement saying the loan has been paid in full and your debt has been completely satisfied.
The written agreement must contain this statement or you may still be at risk of a deficiency judgment at a later time. If you cannot reach an agreement with the lender, yet you still want to sell your property, be aware of the risk of deficiency judgment. If you’re considering bankruptcy to discharge this financial obligation, find an attorney with experience in Alabama home foreclosures.
Selling your Alabama home in foreclosure may be the right option for you if you understand your responsibilities and address any risks. Reply! real estate agents can help you with home values and tactics needed to get the best price for your house.