If the bank sells your building for less than you owe, are you liable for the remaining amount?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If the bank sells your building for less than you owe, are you liable for the remaining amount?
This was an Assisted Living Facility.We were leasing it out and the leasee let her license run out so the state closed it down. It is completely furnished and we are trying to sell the property. We have a mortgage with the bank of $100, 000. So if they start foreclosure and sell for less do we make up the difference?
Asked on September 13, 2011 under Real Estate Law, Michigan
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
When a lender sells real property for less than the remaining mortgage balance, the difference is known as a "deficiency". According the lender can sue the borrower in court for the difference (plus coosts/fees/interest) and obtain a"deficiency judgement". It can they proceed to garnish any non-exempt assets of the borrower in order to satisfythe debt. And deficiency judgment are legal in MI.
At this point you should consult directly with real estate attorney in your area.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.