Foreclosure Judgment: Now what?!
- Douglas M. Matton
- Jul 5, 2016
- 3 min read
When a homeowner is struggling with mortgage payments and misses one or maybe two payment, he is in danger of having a foreclosure case filed against him. That process starts when a legal document called a “complaint” is filed against him in the county in which he resides. The bank must have somebody serve a copy of that complaint on the homeowner. As soon as a homeowner receives the legal documents he then typically consults an attorney.
Q: What does that term “judgment” mean?
A: It means that the court hearing that particular case has made a determination regarding the issues in the case. In a foreclosure case, if a judgment is entered for the bank and against the homeowner, then that means the judge has decided that the homeowner owes the bank a certain sum of money and that the bank is entitled to collect that sum of money. The bank usually collects that sum of money by selling that homeowner’s house and applying the money it gets from the sale to the amount of the debt.
Q: How will I know if a judgment was entered against me?
A: You should get written notice that a judgment was entered against you. That written notice should be sent directly to your residence. If you did not get written notice sent to you, then you can call the Clerk of the Court in the county in which you reside and ask that Clerk if a judgment was entered against you. Or, you could have your attorney do this for you. Your attorney should be able to quickly determine whether or not a judgment was entered against you.
Q: If a judgment is entered, then is the foreclosure case over?
A: No, it is not. If the judgment is entered against the homeowner, then there may still be time for the homeowner to keep his house. That homeowner should immediately consult with an attorney regarding what the next step is.
Q: What is generally the next step?
A: That depends on a number of factors, such as when the judgment was entered and if the house has been sold at auction or not. If the judgment was entered, but the house has not yet been sold, then there is a good chance that an experienced attorney can get that judgment vacated.
Q: What does that mean, “get that judgment vacated?”
A: It means that the judgment would be erased from the court record. This can only be done in certain situations, but it has indeed been accomplished in many foreclosure cases.
Q: In what situations can a judgment be vacated?
A: Typically, a homeowner must have a good reason to vacate a judgment. There must be a sound legal basis to have the court erase that judgment. The court will not vacate a judgment merely for the sake of it. Furthermore, there are certain specific steps which must be followed in order to get a judgment vacated. If those specific steps are not followed, then the judgment will not be vacated but will continue to remain in place, which will enable the house to be sold.
Q: What happens when a judgment is vacated?
A: Usually, when a judgment is vacated, that means the bank has to start all over from the beginning. It must start its case over from square one. This gives the homeowner much-needed time to sort out his financial situation, get back on his feet financially and, hopefully, save his house.
Q: If there was a judgment entered against me, AND the house was sold at auction, then is there any hope for me to keep my house?
A: Yes, there is. In certain situations the entire case can be unwound. Most of those situations entail the bank not following the proper procedures involved with the case itself. These technical procedures, when not properly followed, allow a court not only to vacate a judgment but also to vacate a sale of the property. When that is done, then the entire case must also start over from square one. Again, this gives that homeowner a chance to save their house. Therefore, a homeowner should never give up hope. If you want to save your house, at least consult with an experienced attorney and see if there is something that can be done to help you.
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