Legal Question in Real Estate Law in Georgia

foreclosure and recouping loss

i have a rental property that turned out to be a money pit. it is a house with 7 apartments. I can not keep them rent ready because of vagrants and vandalism, so it is killing me (and my family) financially. i am considering forclosing on the property. i own the house under my corporation, but i signed a personal guarantee. i have no assets (the house and car is in my wife's name only). My question is, if the bank auctions off the house for way below what i owe, can they come after me for the balance???? and if so, how can they get it, i have no other collateral. i have a good job, but all our money that comes in goes back out to bills, other debts, etc. what can i do???


Asked on 8/25/05, 1:07 pm

1 Answer from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: foreclosure and recouping loss

Yes, it is generally possible for the lender to get a deficiency judgment for the difference. While you do not have assets for them to attach, they could (and probably would if it got that far) file a garnishment action requiring your employer to send up to 25% of your wages to the judgment creditor. Good luck. Not all lenders seek deficiencies.

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Answered on 8/25/05, 1:11 pm


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