When deciding whether to fight a foreclosure, take steps to avoid it, or just walk away, you will want to know whether you will still owe the money that the lender loses because of your default. This is usually measured as the difference between what the lender ends up with at the end of the day and the amount of your loan and it is called a deficiency. In many cases, the deficiency can cost thousands of dollars. If you go through a foreclosure in Missouri and the foreclosure sale price does not cover the entire debt, your lender may sue you to collect the entire “deficiency” even if the sale price is less than the property’s fair market value.
Missouri Supreme Court
On April 17, 2012, the Missouri Supreme Court affirmed that Missouri law will continue to calculate a deficiency judgment based on the difference between the debt owed and the price paid at foreclosure, absent modification by statute. In First Bank v. Fischer & Frichtel Inc., the court voted 6-1 to uphold the state’s common law approach in lieu of adopting the Restatement (Third) of Property’s fair value methodology despite the latter’s widespread acceptance in other states. The court left open the possibility that it might reconsider the standard for voiding a foreclosure sale based on an inadequate sales price.
Contact an Experienced Foreclosure Deficiency Attorney in St. Louis, Missouri
The laws regarding Missouri foreclosure deficiency can be difficult to understand and complicated to apply making it necessary to seek the advice of a skilled attorney who can discuss all of the options that may be available to you. Consider contacting an attorney who is familiar with both Missouri and federal laws to discuss the specifics of your case so that you can best understand your rights. If you are facing financial difficulties and cannot pay your monthly mortgage you have enough stress in your life already. Call our experienced foreclosure deficiency attorneys to discuss any foreclosure defense or other defenses that may apply to your case. Call Kenneth P. Carp today at (636) 947-3600 to schedule a free consultation to discuss your case.