2007-02-06 08:31:18 · 8 answers · asked by Salma 1 in Business & Finance ➔ Credit
A foreclosure is no different than a repossession on a vehicle. The mortgage company will sell the property at auction and if there is a balance due you will be liable for it. The good thing is unlike a vehicle homes appreciate in value rather than depreciate so it's rare to owe more on a home than it's worth. But, I have seen it happen depends on if you have taken out second mortgages and how long you have had the home.
Good luck.
2007-02-06 08:38:41 · answer #1 · answered by ? 7 · 0⤊ 0⤋
If the bank forecloses on the property, they will attempt to sell it immediately for what is owed plus legal costs.
If they are unable to pay the loan off with the sale proceeds the bank will file a summary judgment against you for the amount of the deficit.
However, if foreclosure happens and the property is sold for an amount significantly higher than the debt, the bank is obligated to return the difference to you.
2007-02-06 10:06:46 · answer #2 · answered by Culture Warrior 4 · 0⤊ 0⤋
Yes. A forclosure is only the act of the lender reposessing property; it does not negate payment obligation. Once it forcloses it will be put up for sale and at the time of sale the bank as the lender will get first access to any and all funds after realtor/legal fees. If there is money left after that then the owner will be issued a check for the balance. If the monies collected are less than what is owed, the bank will attempt to collect the balance of the owed debt upto an including legal action.
2007-02-06 08:52:45 · answer #3 · answered by christopherscott3 2 · 0⤊ 0⤋
The easy answer is the collateral will more than likely cover the debt. The only difference between a car repossession and a house repossession is in a car you are usually "upside down" you owe more than it's worth, vs. the day you buy a house you pay it down while it goes up in value. For example:
car 20,000 - 22,000 owe = -2,000
house 100,000 - 95,000 owe = +5,000
Nowadays it's very rare that someone owes more than the house is worth, so chances are the bank will sell the house and be done with it.
2007-02-06 10:00:20 · answer #4 · answered by Kevin K 3 · 0⤊ 0⤋
I don't believe you have to pay anything back. The bank gets the house and sells it, hopefully, getting back what it was foreclosed for.
2007-02-06 08:38:52 · answer #5 · answered by Anonymous · 0⤊ 0⤋
provide up paying lease at present. the guy who rents the land might now no longer very own the land. You do have renters rights, which contain the the superb option to stay there as a renter - and in some states, that contract overrides the potential of a financial corporation to evict you till the top of the lease - IF the lease became into signed in the previous the loan. in any different case, the foreclosure will erase the lease contract. seek for suggestion from with a genuine assets lawyer - you may as nicely get funds to bypass out. the two way, the hot proprietor (the financial corporation, or the customer at public sale) has to offer you your finished criminal entitlement for an eviction - in maximum states this is a minimum of 30 days to bypass out. you may negotiate for funds for an early flow out. yet another exception to the rule are section 8 renters - their leases will stay to tell the story a foreclosure in spite of whilst the loan became into signed.
2016-10-01 12:59:31 · answer #6 · answered by dorais 4 · 0⤊ 0⤋
you don't foreclose on your own house, you get foreclosed on by a bank or mortgage company, who ever owns your house, and any payments made are forfeited, you do not get any money back when you are foreclosed on.
2007-02-06 08:38:32 · answer #7 · answered by Sir Hard & Thick 2 · 0⤊ 0⤋
no the house is collateral, they sell it for what you owe on it to cover the debt.
2007-02-06 08:35:25 · answer #8 · answered by Scott K 2 · 0⤊ 0⤋