I have a first and a second
2007-02-05 08:03:59 · 11 answers · asked by Richard W 1 in Business & Finance ➔ Renting & Real Estate
This is not my understanding; I agree that they will try and get the money but NO ONE goes thru forclosure and then pays the difference in practice. Your credit will be shot anyhow so why would you?
What I have heard it that the mortgage company writes off the loss to the IRS and the IRS comes after you for the tax shortfall the gov incurred due to the mortgage company write off the loss.
2007-02-05 08:14:14 · answer #1 · answered by jck_kerouac 2 · 2⤊ 2⤋
I guess the question is what do you mean by liable? If the home is the only security for the loans then they can't take other property from you. They will, however, attempt to collect the money. Other than being a nuisance this won't be too big of a deal because your credit will already take a large hit simply from the foreclosure. Advise would be to look into bankruptcy if your already losing your home. Its tough with all the new rules, but you'll never have to worry about the neg. equity unless you have more asests.
2007-02-05 08:09:43 · answer #2 · answered by Joshua L 2 · 0⤊ 0⤋
wizjp is correct. You are liable until the debt is considered paid in full. My first husband and I wanted to surrender our pre-fab home back to the company as it was plagued with problems. We consulted an attorney who told us we had to declare bankruptcy to be rid of it because the company would foreclose, sell the home at a loss and then come after us to pay the difference.
2007-02-05 08:09:20 · answer #3 · answered by his temptress 5 · 0⤊ 0⤋
Yes. You mortgage company will file a judgement against you for the difference between what you owed and what they got from the sale of your foreclosed home.
2007-02-05 08:07:31 · answer #4 · answered by Omni D 5 · 0⤊ 0⤋
Its conceivable. It relies upon how the divorce courtroom sees it. The courtroom might manage the unfavourable fairness like a joint debt and require the two events to pay a million/2. in the event that they owed $40k on a joint mastercard he'd be caught with a million/2 the bill, so the homestead might nicely be taken care of the comparable.
2016-10-01 11:37:22 · answer #5 · answered by ? 4 · 0⤊ 0⤋
In most cases, they really don't pursue you for the losses, since it's presumed you have no money anyway.
It is correct that you will likely receive a 1099 from them for the shortage, as it could be considered income to you, since you got the benefit of the money without paying it back. You'd have to consult a tax professional when the time comes to see if you really owe anything in taxes.
2007-02-05 09:38:30 · answer #6 · answered by Anonymous · 1⤊ 1⤋
Yes. In addition to all the fees that they want to throw at you.
Check how much you could get for the house if you sold it. Look at the difference and see which one hurts less in the long run.
2007-02-05 08:15:28 · answer #7 · answered by grantwiscour 4 · 0⤊ 0⤋
Yes. The debt never goes away till it's satisfied; the only change is the property no longer secures the debt in most states.
2007-02-05 08:06:26 · answer #8 · answered by wizjp 7 · 1⤊ 1⤋
depends. If they sell the house for less than you owe then you will have to pay the difference.
2007-02-05 08:34:46 · answer #9 · answered by Anonymous · 1⤊ 1⤋
yes, they will get it. Even if you are 65.
2007-02-05 08:10:14 · answer #10 · answered by Sherry T 1 · 0⤊ 0⤋