Legal Question in Real Estate Law in Texas

Re: Foreclosed home now getting debt collections

Please understand this is information written by a lawyer but without talking with you directly, I cannot issue or provide you with any "real" or "specific" legal advice (i.e. the type of advice you can rely on 100%). I am writing generally about your problem. Please give me a call if you want to give me more facts that may enable me to help you in a more specific sense.

The bank's (or "note" holder's) lawyer is asking you for what amounts to a deficiency judgment on the foreclosed property. This is the difference between what the property was sold for on the courthouse steps and the costs of the foreclosure (administrative fees, attorney's fees, etc. plus the value of the loan.

30K is a lot of money and you may want to write a letter to see if you can get this resolved short of going to court. If the lawyer's client is serious, they will bring an action against you in court for the money (or at least get a judgment). You will probably want to fight any lawsuit because of the significant value of the deficiency.

Unfortunately, you may have been able to fight the foreclosure and avoided all of this. Most "note" holders these days are really holding a a whole bunch of nothing and cannot prove their ownership (and thus, cannot win at a contested foreclosure to save their life).