Legal Question in Credit and Debt Law in Ohio

Re: Foreclosures and Liens

A foreclsoure does not automatically give the lien holder the right to place a lien against property for which they have not been given a security lien. As for any deficiency after the mortgage on your your Ohio home is foreclosed, you could be sued for the deficiency.

If they obtain a judgment for the deficiency, they could then execute on the judgment. However, to place a lien on property in Alabama they would need to domesticate the judgment. All that said, it is unlikley any of this will happen. We are seeing more and more mortgage companies write off the deficiency and then send a 1009-C for the debt forgiven. That also has a down side, as the IRS considers the amount forgiven as income to you.