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Path: utzoo!linus!philabs!cmcl2!seismo!lll-crg!qantel!ihnp4!houxm!whuxl!whuxlm!akgua!akgub!cylixd!dave
From: dave@cylixd.UUCP (Dave Kirby)
Newsgroups: net.invest,net.consumers
Subject: Deficiency Clauses
Message-ID: <488@cylixd.UUCP>
Date: Thu, 14-Nov-85 15:21:10 EST
Article-I.D.: cylixd.488
Posted: Thu Nov 14 15:21:10 1985
Date-Received: Sun, 17-Nov-85 06:44:45 EST
References: <1137@decwrl.UUCP> <109000011@ima.UUCP>
Reply-To: dave@cylixd.UUCP (Dave Kirby)
Organization: RCA Cylix Communications , Memphis, TN
Lines: 18
Xref: linus net.invest:861 net.consumers:2926

In article <109000011@ima.UUCP> johnl@ima.UUCP writes:

>... If the bank reposesses the house, sells it, and it still doesn't cover
>the mortgage, that's the bank's tough luck, and it suggests that they were
>pretty dumb to lend more than the house was worth.


True, unless your contract with them has a "deficiency clause," in which
case they can come after you for the difference. In practice, I hear,
this is seldom done, because of court costs and delays, and because
you can always challenge them in court to prove that they sold your
house at fair market value.

BTW, if they sell it for more than it's worth (hardly ever done), they
have to pay YOU the difference.

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Dave Kirby    ( ...!ihnp4!akgub!cylixd!dave)