What Happens if I Quit My Job and Can't Pay My Bills?
Full Question:
Answer:
The foreclosure process can take place in two different manners. Either the lender will invoke its powers of a private trustee's sale, which are given under the deed of trust, or it will bring a lawsuit for a judicial foreclosure, pleading that it has a deed of trust against the property, that you have defaulted on the loan secured by the deed of trust, and that the court should therefore order the deed of trust foreclosed and decree that the property be sold to pay off the entire loan debt.
A deficiency judgment is a judgment lien against a debtor, defendant or borrower whose foreclosure sale did not produce sufficient funds to pay the mortgage in full. This option may or may not be available to the lender, depending on whether they have made a recourse or non recourse loan. A non-recourse loan means the buyer cannot be personally held responsible for any deficiency in the loss of a property due to foreclosure or other factor, and the lender generally can't pursue a deficiency judgment.
Judgement proof refers to a debtor who has little or no assets for a creditor to seek payment of a judgement from. In some cases, a person threatened with or subject to potential litigation may make themself judgment proof by diverting his/her assets into holdings that can't be reached by local courts, such as investing their money offshore through offshore trusts. However, unpaid judgments will affect one's credit rating and ability to get loans in the future. Credit ratings affect other matters, such as insurance rates, as well.
For further discussion, please see:
http://ezinearticles.com/?Ohio-Foreclosure-Process&id=151556
http://ezinearticles.com/?Ohio-Foreclosures-Process-Can-Take-Time&id=693606
