Yes, it is possible.

If there is a foreclosure of your mortgage that you used to buy the property, and if the mortgage company doesn't sell the house for at least what you owe on it, there can be a "deficiency" balance due.

Simplified Example: you owe $150,000 to Bank of America for your house. You lose your job and can't make payments, so the bank forecloses on you. At the "auction style" foreclosure sale, there is no one that will bid $150,000. So the bank enters it's own bid of $100,000. You still owe the difference, $50,000. The bank can then sue you for that money, turn it over to a collection agency, or sell the debt to another company who can then try to collect from you.

If you have a Texas home equity loan or home equity line of credit, the bank cannot chase you for more money after a foreclosure sale; they are called "non-recourse" loans. And in Texas, mortgage companies and banks only have 2 years following the foreclosure to sue you for a "deficiency" debt, even if your loan was a regular mortgage that they can sue you on. Texas Property Code, Sec. 51.003.

If you have this kind of problem, call us at our law office in west Houston, at 713-772-8037. We handle cases for people that live or own property in all of the following counties: Austin, Brazoria, Brazos, Chambers, Colorado, Fayette, Fort Bend, Galveston, Grimes, Harris, Madison, Matagorda, Montgomery, San Jacinto, Walker, Waller, Wharton.




J Thomas Black
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Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization