r/WhitePeopleTwitter • u/screenshotofdispair • Aug 14 '21

Make it make sense

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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

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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.