Will there be any financial obligation left for me after I enter into foreclosure? A PMI(private mortgage insurance) is embedded in my mortgage payment, which will protect the lender in any differentials. Therefore I do not think I will have any obligation, including additional financial obligations, to any party. Am I right?
In addition, what will happen to me once I enter into foreclosure? I mean, on the top of being kicked out of my place.
2006-07-11 12:05:39 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Aaaaaggghhh! WHAT ARE YOU DOING? Do NOT allow yourself to be dragged into foreclosure. It will completely destroy your credit - taking YEARS to recover from. True, you will be kicked out of your home. And - NO - you will not have any further financial obligations TIED TO THE PROPERTY. This doesn't include other debts you may have (i.e. - credit cards, car payments, etc.) because they are not being paid off throught the foreclosure - only your current mortgage/back payments are. But there is another option (and I know, because I do this for a living). Find a wholesaler who will wholesale/short sale your house to a rehabber. You may lose some of the equity in your home and walk away with little money, but in foreclosure you'll walk away with NO money... so the first choice at least gives you a little hope. Furthermore, it will stop the foreclosure and save your credit from one. Please, please, please... find someone before the lender pulls it out from under you! PLEASE! If you need more help, email me... fragglerockqueen@yahoo.com
2006-07-11 12:14:01 · answer #1 · answered by fragglerockqueen 5 · 0⤊ 0⤋
It depends on weather the proceeds from the foreclosure are enough to cover the liability of the mortgage. Secondly, the PMI covers only a part of the mortgage (any part above 80%). This can still leave a big liability on you.
Also, once you enter into foreclosure, your credit reports will show that you are in foreclosure. Which is worse than going bankrupt.
If I were you I would consider Chapter 13 Bankruptcy. Thoroughly discuss this with your attorney, though most of bankruptcy attorneys will encourage a bankruptcy to anyone!
In any event good luck. And remember this is not a legal advice.
2006-07-11 19:16:11 · answer #2 · answered by davidjohncpa 2 · 0⤊ 0⤋
You may have state and federal tax liabilities as well as utility shut off charges, etc. foreclosure is not a good option for anyone. Better to do a short sale to a non relative.
2006-07-11 19:11:13 · answer #3 · answered by Daniel M 4 · 0⤊ 0⤋
You can have your lender do a forbearance, loan modification, or possibly refinance. There are many options available to you, but from my standpoint, as someone who has gone through foreclosure, it DOES effect your future more than you think (jobs, etc).
If you have any questions or need help, email me at robert495713@yahoo.com. (this is not legal advice)
Good luck
2006-07-12 18:44:00 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Mortgage insurance doesn't cover wear and tear, so if the property is in a condition in which it is worth less than the pay off of the loan they can come after you for the balance.
2006-07-11 19:11:57 · answer #5 · answered by Not Tellin 4 · 0⤊ 0⤋
Avoid going that way if there's any way out of it. It's a huge burden.
You'll be branded as a pig-faced bag of rat vomit for years to come, and it'll come out even on job applications (when they check your credit, which is happening more and more). That means your job prospects go nearly to zero.
Thus you'll be punished in dozens of different ways you can hardly envision now. Don't do it if there's any human way out.
2006-07-11 19:10:56 · answer #6 · answered by Lee R 1 · 0⤊ 0⤋