In Judicial Foreclosure Will My House Be Sold For Fair Market Value?

If you are concerned that your home will be sold for less then the fair value, many states like California afford you the right to petition the court to determine the market value of the home at the time of the foreclosure sale. This issue usually comes up in response to the lenders petition for a deficiency judgment against you. In many states, under the judicial foreclosure process, obtaining a deficiency judgment is not permitted and is seen as adding insult to financial injury.

In California this process is called a “fair hearing” proceeding and it is pursuant to CCP Section 736(b). The hearing will allow you to present evidence to the judge of what you contend was the fair market value of your home. It is common to present evidence in the form of an appraisal supported by properties of like kind and quality to yours. The lenders representative will offer evidence of value as well. The judge will then set a fair market value to the property and the difference between courts value and the price obtained at the foreclosures, will, if determined in your favor, will result in a favorable adjustment to the lenders deficiency judgment against you.

For those states that still allow for deficiency judgments in judicial foreclosure actions, learn how the creditor-lender obtains such a judgment:

The Deficiency Judgment In Judicial Foreclosures >>

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