What is the deficiency law?
What is the deficiency law?
In the context of a foreclosure, a “deficiency” is the difference between what a borrower owes on a mortgage loan and the price at which the house is sold at a foreclosure sale. An “anti-deficiency law” is a state statute (law) that prohibits foreclosing banks from suing borrowers for deficiency judgments.
What do you need to know about the Anti Deficiency Act?
If you’re interested in learning more about the Anti-Deficiency Act and your legal liabilities, you should speak with a military attorney or a civilian attorney who specializes in military law especially because congressional appropriations and authorizations frequently change.
Where can I find a copy of the Antideficiency Act?
Agency heads and the Mayor of the District of Columbia must provide a copy of Antideficiency Act reports to the Comptroller General of the United States at the same time they are submitted to the President and Congress. . GAO will confirm receipt by e-mail.
Can a DoD employee violate the Antideficiency Act?
A DoD employee is at risk of violating the Antideficiency Act under certain provisions of Public Law 101-510 or Public Law 102-484. Public Law 101-510 provides for the cancellation of appropriations after specified periods, extension of the expired status for appropriations from 2 years to 5 years, and elimination of the merged accounts.
When to report a violation of the Antideficiency Act?
The reporting requirements of the Antideficiency Act apply to all violations, including those that GAO finds. After GAO publishes a decision or opinion concluding that an Antideficiency Act violation occurred, we will contact the relevant agency to ensure a report of the violation.
What does it mean to have an Anti Deficiency law?
An “anti-deficiency law” is a state statute that prohibits lenders from suing borrowers for deficiencies (the difference between the amount owed on a mortgage and the price at which a house is sold in foreclosure), often on mortgages secured by a borrower’s principal residence.
Is there an Anti Deficiency law in California?
For example, California gives borrowers anti-deficiency protection even if the borrower is on their fourth mortgage. Other states will not be as forgiving. There may be factors in each individual claim that may affect the applicability of anti-deficiency laws.
Can a private party waive the Anti Deficiency law?
Borrowers generally cannot waive their right to use anti-deficiency laws if the borrower was the primary borrower of the loan. Anti-deficiency laws are a matter of public policy and thus private parties cannot waive anti-deficiency laws through contract or mutual agreement.
When are Anti Deficiency laws inapplicable in Iowa?
In Iowa, anti-deficiency protection is limited to cases where the lender chooses foreclosure without right of redemption and the borrower does not demand that the foreclosure be delayed. When Are Anti-Deficiency Laws Inapplicable?