As I discussed in my posts about the different options for homeowners in “underwater” mortgages, Minnesota allows for deficiency judgments in some cases. See Minn. Stat. § 582.30. CNN recently posted this article about mortgage lenders pursuing deficiency judgments. These deficiency judgments have caused people to have to file for bankruptcy, even after they thought that the nightmare of losing their homes was behind them.
If your house is going into foreclosure, or you think that you may have to short sale your house, please consult with an attorney about it. There is a lot of mixed information out there about what happens when there is a deficiency after a foreclosure or short sale. It’s imperative to have accurate information when your financial future is at stake.