If a person is foreclosed on, will the bank come after them for the difference between what was owed on the total mortgage about and what the house got at auction?
2007-03-15 10:53:44 · 9 answers · asked by mconder 2 in Business & Finance ➔ Renting & Real Estate
There really seems to be some different opinions on this one. Is anyone an attorney?
2007-03-15 11:05:29 · update #1
If the mortgage was used to purchase the property (i.e. purchase money loan), then no, the bank will not seek a deficiency judgement. If, however, the person refinanced the loan and used it toward debt consolidation or the purchase of any other property (real or personal), then yes the mortgage company can go after him/her for the difference.
2007-03-15 11:00:19 · answer #1 · answered by ucla987 2 · 1⤊ 2⤋
Yes they will, I have a relative who's home was forclosed on, and 2 years after the forclosure, he received letter saying that he owed the bank several thousand dollars for the difference in the payoff of the house, and what it was auctioned for.
2007-03-15 10:58:14 · answer #2 · answered by Society Dweller 2 · 1⤊ 0⤋
Absolutely. It's called a deficiency balance. It's rare for it to happen on a mortgage but it doe's especially in today's home market. It will take awhile for them to go through the courts but they will get a judgment eventually and then they can attach property, bank accounts and garnish your wages.
2007-03-15 10:58:47 · answer #3 · answered by ? 7 · 0⤊ 0⤋
as a techniques s "entering into good" with the economic institution- they cant look at you in a greater specific way purely given which you have become a private loan via them. if something, that they had be apt to be much greater careful because of the fact instead of doing away with the abode and being accomplished with the loss they'd incur in a short sale, they'd desire to possibility loosing much greater by using loaning it to you... a minimum of thats the way i'd think of.... the best thank you to look good to a economic institution whilst interested in a short sale is to furnish as on the factor of you are able to, or perhaps the completed purchase value. a short sale ability they have agreed to take a loss for the valuables, so as that they wan't to upward push as much as what's owed left on it as conceivable.
2016-12-18 14:39:18 · answer #4 · answered by ? 4 · 0⤊ 0⤋
yes they will. this is no different than when they repo a car that you had a loan on or anything else. the debt is not settled until they get all of their money. however, you can attempt to settle with them for less than the amount you owe. if you owe them $30k and say you have $25k in cash, then often will take that and settle the debt rather than put you on a payment plan for $30k.
2007-03-15 10:57:47 · answer #5 · answered by Matt 4 · 1⤊ 1⤋
If it is foreclosed, on the bank takes ownership from you, they don't come after you for the difference, they get the house...
2007-03-15 10:56:49 · answer #6 · answered by ACTS 4:12 4 · 0⤊ 2⤋
No, the lender doesn't ordinarily come after you for the difference because it was an insured loan, and they've already gotten their proceeds.
2007-03-15 12:05:58 · answer #7 · answered by Venita Peyton 6 · 0⤊ 2⤋
No. They are selling it and they should be careful about it sells for to cover the debt.
2007-03-15 11:01:17 · answer #8 · answered by Gone fishin' 7 · 0⤊ 2⤋
Yes they use the mafia to collect , better run.
2007-03-15 10:57:08 · answer #9 · answered by Heads up! 5 · 0⤊ 2⤋