If you are facing foreclosure there is a good chance that you may end up owing your lender money after the foreclosure is complete. The laws vary from state to state so you will want to speak to a real estate attorney about your rights and possible consequences of a foreclosure.

You may be able to negotiate a short sale with the lender to avoid owing money after the foreclosure. A "short sale" is when you negotiate a lower pay off amount then what the lender has actually issued.

In the state of California, a variety of restrictions prevent lenders from pursuing deficiency judgments against borrowers who default on a "purchase money" mortgage.

Sometimes lenders will issue a "deficency judgement" lien in your credit report for the amount that was unpaid at the end of the process. This varies from company to company.

Contact a mortgage professional at to discuss which attorney would be best for their current situation.

Some Lenders will issue a 1099 income statement to borrowers who are defecient in paying off their present mortgage balance.

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