Page 4 - Deficiency Judgment News Today : Breaking News, Live Updates & Top Stories | Vimarsana

the dark. our congressional correspondent kate bolduan is on capitol hill looking into the story. kate, what's going only here? this was not supposed to be like this. >> reporter: hey there, wolf. i'm standing out front as people are passing by. behind me is this nondescript room. this is where the super committee will meet again this evening behind closed doors which has some government watchers, since this committee has such a huge job before them, some government watchers are calling this approach troubling. >> good morning. >> reporter: the so-called super committee began its wor...

Credit reports. if you're planning to foreclosure, make sure you secure another place to live, most likely a rental before your credit takes the hit. another serious side effect to keep in mind is in some states a lender can come after other assets or garnish wages. it's rare but happens if you walk away. this is a deficiency judgment but in nonresource statements you pay a surcharge so the lender can't come after you. know the rules in your state. >> all right, carmen. we are learning the rules as we go. you say there are benefits for homeowners if they decide to foreclosure. i want to sit ti...

Always on the assumption the prices would only go higher. >> gregg: so in addition to getting a deficiency judgment against you, in other words, you have to keep paying on and on and on, maybe for years even after your home is sold or seized, they're also doing something else, up to seven years they may be able to black list you. what's that about? >> even if a free market, when sovereign nations default on their debt or corporations default on their debt, you go into a penalty box, which can last for years and years and years, depending on what the circumstances were. so this is not unusual. ...

Year and some 11 million households now owe more on their mortgage than their home is worth. in other words, under water. joining us now to talk about, chairman ask ceo of a capital company. they're doing two things. fannie mae, one of them is they're going to go after you for what you owe if you walk away. it's called a deficiency judgment. right? >> that's right. and from my point of view, it's a little bit like what we're seeing on a broad array of issues, and that is closing the barn door after the horse is gone. they're basically putting all of these new regulations in place and taking th...

Mortgage or they own the home and they're renting it to someone else, collecting the rent and not paying the bank. fannie mae says be careful. it says walking away is bad for borrowers and bad for communities and they've reinstated a seven-year lockout from getting a new loan and are also saying there could be legal action in some states where they could go after you for what you have walked away. getting a deficiency judgment against you for the money that you've left on the table. they say these are, they're talking about people who have not, tj, tried the alternative. who have not tried a l...