Homeowners undergoing the process of foreclosure might still owe money to their mortgage lenders. This situation is otherwise known as a deficiency, and under Iowa law, lenders are given the option to file for a deficiency judgment.
A lender may choose to opt out of filing for a deficiency judgment, or be ineligible altogether. In the case that a lender does decide to file, the deficiency is the difference between the sale price of the foreclosed home and the total debt owed. So, if a foreclosed home sells for $300,000 but the total debt owed is $340,000, the total deficiency that the lender may consequently seek is $40,000.
Handling the process of foreclosure can be quite strenuous. If you are being sought by a creditor and, as such, being threatened with foreclosure, keep in mind that you can seek out the assistance of an attorney. If you are facing a similar situation in Iowa, our experienced team of foreclosure defense attorneys at Hong Law, PLC may be of great benefit to you. Contact our Cedar Rapids office at (319) 632-1400 to discuss the particulars of your foreclosure situation with us today.
Coralville, IA 52241
Phone: (319) 354-1804
Map to our Coralville Office