Wednesday, January 11, 2012

Bill Filed to Limit Foreclosure Deficiencies

Congressman Ed Towns has filed a bill in the House of Representatives to standardize and limit a lender's ability to file for a deficiency judgment after a foreclosure. A deficiency is the difference between the amount a bank receives at the foreclosure sale and the amount the homeowner owed. Many consumers do not realize that a bank or other lender may file for a judgment for the deficiency for four years in Texas.

The differences between states can vary from six years to complete bans on deficiency judgments. This difference creates confusion among consumers who have already been through the a demoralizing loss of their home.

The unprecedented number of foreclosures in recent years has revealed inconsistencies and weaknesses in the foreclosure process. Lenders should be able to foreclose in appropriate situations, but the process must be fair and transparent.

Did you know the Grove Team can help homeowners in distress? Call our team today to learn about options to avoid foreclosure...(817) 337-0000 or find us online,

No comments:

Post a Comment