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North Carolina Deficiency Judgment Debt Collection Lawyer


In North Carolina, commercial debt collectors are entitled to pursue a deficiency judgment after a foreclosure on real property. However, these types of lawsuits are much more complicated than a standard money-owed debt collection suit.  Contact Maginnis Howard at (919) 526-0450 to speak with a Raleigh debt collection attorney to discuss deficiency judgment litigation if you are a homeowner, note holder, or former seller/developer who has been brought in as a third-party defendant.

A homeowner can allege as a defense in a deficiency judgment suit that the fair value of the property at the time of sale was substantially more than the amount bid at the foreclosure auction or that the property sold was worth the amount of debt owed under the promissory note.  This would offset any damages owed by the homeowner to the holder of the note, usually a bank.  The holder of the note also cannot obtain a deficiency judgment against a homeowner where it is evident on the face of the note/deed of trust that the loan was for purchase money for real estate.

It’s often the case, that the seller may prepare the notes, such as when purchasing in a new development.  If the note is prepared under the direction or supervision of the seller or sellers, a homeowner can offset any damages owed to the bank via a claim against the seller/developer.

Because of questions regarding the value of the property, purchase money security interests, and the role of a seller/developer complicate deficiency judgment suits, it is important to have a Raleigh civil attorney with experience in handling these sorts of matters.  Maginnis Howard is a Raleigh civil litigation firm handling cases in Cary, Apex, Morrisville, Clayton, Wake Forest and the rest of the Triangle area.  Contact the firm at (919) 526-0450 to speak with a Raleigh debt collection lawyer or submit a new case inquiry through our contact page.