Foreclosure Hell is real for thousands of former homeowners across the country. Debtors who were foreclosed on in 2010 through 2014 are being shocked with new lawsuits trying to collect on deficiency judgments. As I talked about previously in The Walking (Away) Dead, the most dangerous part of walking away from your home is that you lose your ability to negotiate away your deficiency judgment. It's that deficiency judgment that can come back to haunt you one day.
Next week a little over 80 foreclosure cases in Sarasota County will go to trial. In less than a quarter of those cases will anyone show up to speak for the homeowner (including attorneys or the homeowners themselves). That means close to 60 foreclosures will go through with no protection for the owner of the property. So in one week, 50 to 60 former homeowners will be exposing themselves to a personal judgment down the road. Their house is upside down and is being sold at auction, and they didn't take the time to just show up and settle the case.
I understand why those 50 to 60 homes will get sold without a peep - its hard for a family to face down a foreclosure crisis. For many, it's emotionally easier to just walk away. They feel like there's nothing they can do to stop the bank steamrolling over them, so they just let it die. They don't get help.
I wish it were that simple. I wish you could throw your hands up and walk away, but your entire financial future is at risk when you walk away. Go back and reread the original article on Foreclosure Hell. Don't be those people.
It doesn't matter if your foreclosure case is just getting started, or has been laying around for years, it's never too late to try to settle your case and ask to be released from your deficiency. Don't fall into the emotional trap of walking away without settling. That's how you end up in Foreclosure Hell. Even if your foreclosure trial is happening tomorrow, it's not too late for you.
Avoid Foreclosure Hell. Settle your case, or pay a small fee for a lawyer to settle it for you. It's not too late.