A friend of mine lives in MI. Does he need to worry about criminal or legal problems. I think the bank sold the property but the sale probably would not have covered the full mortgage amount. How does he find out? What should he do? Is he in any trouble? He's scared to ask anyone. Please let me know how I can advise and help him!
2007-03-23 20:41:31 · 5 answers · asked by dotes 1 in Business & Finance ➔ Renting & Real Estate
It depends on the state and the kind of foreclosure. In some states, the bank or creditor has a choice of remedy. They can go after the property or the money. Most times, they go after the property. Which is good for you. Because if the value of the property doesnt satisfy the debt, they have no recourse against you for the balance, and you are off the hook.
Now in many states, usually in the East of the US, they can foreclose, take the property AND get what is called a deficiency judgment for the balance. You may find yourself losing your house AND owing tens of thousands of dollars to the bank.
I suggest you find out what your exposure is in your state.
2007-03-23 20:47:32 · answer #1 · answered by Toodeemo 7 · 0⤊ 0⤋
Please keep in mind I am speaking as a business owner when I say that unfortunately it's not criminal, but there may be civil issues and judgements and certainly it's not helping his credit.
I seriously doubt they'll throw him in jail, thou I find it very interesting how a credible threat of doing some time is the ultimate motivating tool when it comes to getting deadbeats to pay... This, however, can not happen because it is against the Fair Debt Collection Act.
So he'll be awrite, relax.
Worst thing at this point might be an HR credit rating and might have to declare bankruptcy should the bank proceed into further types of debt that can't be paid, take about 4-5 or 7 - 10 years or so to get over it either way, so he'll find himself a bit short on loan ability for some time, but other than that it's all good.
Yeah you can call the bank and see, but they won't exactly give you near as cooperative an answer as mine so maybe a financial advisor, but either way it's foreclosed, gone, I don't think there's much to be done, unless he has the money...
2007-03-24 03:47:56 · answer #2 · answered by netthiefx 5 · 0⤊ 0⤋
He does have legal problems because he has a judgment againt him because of hte process. You can call the sheriff's sale to see what the property sold for to see if he owes a deficiency. He is in trouble and probably should file bankrutpcy. Sorry for hte bad news
2007-03-24 12:26:45 · answer #3 · answered by Anonymous · 0⤊ 0⤋
the bank reposes ed the property. now it will be reported to a credit agency and his credit will be damaged but not ruined. he might get phone calls demanding repayment but if it's annoying he can tell them not to contact him and by the law they can't.
2007-03-24 03:55:41 · answer #4 · answered by jthessen 2 · 0⤊ 0⤋
he is liable for the rest of the money if the bank didnt get full restitution and he better pay it before he is reallly rammed in the ***
2007-03-24 03:44:49 · answer #5 · answered by camden 3 · 0⤊ 0⤋