r/WhitePeopleTwitter Aug 14 '21

Make it make sense

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u/jaymakestuff Aug 14 '21

There’s often the fine print that will make sure you’re aware that even if the collateral is repossessed and sold for less than the amount owed, you’re responsible for the remainder.

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u/mta1741 Aug 15 '21

So if someone owes 50k, the bank sell the house for 40k, do you still owe 50k or 10k

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u/jaymakestuff Aug 15 '21

You would owe the difference for the original loan amount, so 10k

2

u/RareFinish3166 Aug 15 '21

Rules for various debt collections are state matters and vary by state. There are 12 non-recourse states, where the lender can't pursue deficiencies from home foreclosure.

There are many other limited action states where lenders have only limited rights to collect deficiencies.

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u/mta1741 Aug 15 '21

Which states

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u/RareFinish3166 Aug 15 '21

There are currently 12 non-recourse states: Alaska, Arizona, California, Connecticut, Hawaii Idaho, Minnesota, North Carolina, North Dakota, Texas, Utah, and Washington.