My question is can the mortgage co. come after him later for the difference in what is owed and what they sell it for. PLEASE answer as soon as possible.
2007-04-01 11:14:29 · 9 answers · asked by Missymoo 2 in Business & Finance ➔ Credit
They can but almost never do. The logic is simple. He gave up the house, what money does he have to pay any judgment. They also know that if they try to come after him, he can simply file for bankruptcy and have it wiped away. I have been in the mortgage industry for over 15 years and have never seen it happen.
Best of luck.
2007-04-04 04:39:58 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Yes, the most certainly can and WILL come after your nephew for the difference. Bankruptcy should be an absolute last resort. I'm assuming refinancing is probably out of the question, because most people with good credit stick with a convential loan instead of an Adjustable Rate Mortgage (unless he bought a house he couldn't afford the house to begin with).
A short-sell maybe his best bet. That means he has to get the mortgage co. to accept whatever he can sell the house for as the pay-off.
2007-04-01 23:22:54 · answer #2 · answered by linkin 2 · 0⤊ 0⤋
Yes, he should try to re-finance. Sell the home. He can file banckruptcy to stop the forclosure that will give him about a year or a year and a hlf to work something out. I am sure the mortgage company will be willing to renegotiate they don't want the house. I had the same problem after my car was stolen and the insurance did not cover what was owed. So I had to pay the difference. He need to find a low fixed rate.
2007-04-01 18:34:04 · answer #3 · answered by bigdraws 2 · 0⤊ 0⤋
I would seriously have your nephew see a reputable bankruptcy lawyer in his area to go over his situation. If he qualifies he can file a chapter 13 bankruptcy which will help save his home. The lawyer may even know ways to help him refinance his home to get into a fixed conventional mortgage and away from the nasty adjustable rate mortgages that are taking down so many people right now.
There is nothing wrong with filing bankruptcy. We all fall into hard times at one point in our lives. We live and learn- or at least most of us do. I know I have.
2007-04-01 20:38:17 · answer #4 · answered by Kris 3 · 0⤊ 0⤋
You should really consult a lawyer as this is definately a legal question and who knows how good the source on yahoo answers will be. But, I do do believe that they can go after him for the difference and he may be better off trying to sell the house on his own since a foreclosure is almost always sold at huge discounts.
2007-04-01 19:15:14 · answer #5 · answered by luvbrd81 2 · 0⤊ 0⤋
Your Home Is Your Castle.
Surprisingly, your nephew can keep the house.
Your nephew can in-fact reduce the term of the mortgage.
Your nephew can also start to build equity this year.
All that can be done by your nephew directly, without him paying anyone.
The KEY is to know what actions to take.
Check it out: http://tinyurl.com/377j9n
Be aware that the mortgage holder will attempt to convince your nephew not to go ahead with the actions.
These are little known legal and lawful actions and very simple
2007-04-01 18:48:58 · answer #6 · answered by cuenca 1 · 0⤊ 1⤋
Check any foreclosure service company and make him call there as soon as possible. They can help him out with simple interview. Don't let him ruin his financial life!
2007-04-02 13:50:43 · answer #7 · answered by plzpatience 2 · 0⤊ 0⤋
HELLLLLLLLLL YES!!!
The nightmare is just beginning.
You are absolutely and positively correct.
2007-04-02 05:48:44 · answer #8 · answered by DaMan 5 · 0⤊ 0⤋
Yes they can.
2007-04-01 18:33:37 · answer #9 · answered by Judy 7 · 1⤊ 0⤋