2007-06-11 12:12:21 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
No. The bank will sell it for the amount of the loan still due. But your credit will be screwwwwwwwed.
-MM
2007-06-11 12:15:37 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The answer is yes... and no.
According to California law, if the home is foreclosed on, and the sale of the house is less than what you owe (plus expenses) then you would be legally liable for the difference. But that is not what happens in practice.
In California most lenders use trust deeds (about 99.9%). During the sale of a trust deed the "sale" equals or is greater than the amount of the amount due. So if it is a Trust Deed foreclosure than you have no remaining liability.
An exception to that is that lenders do have an option to do a judicial foreclosure. They would only do this if the amount of the loan is much more than the worth of the property, AND the borrower has other assets to get. In that case, the lender could do a judicial foreclosure (which lasts a long time - 2 years or more) but in the end the old owner would be liable.
So it is possible, but realistically remote.
2007-06-11 19:26:01 · answer #2 · answered by rlloydevans 4 · 0⤊ 0⤋
You may or may not be held liable, depending on whether your mortgage contract or deed of trust contains or does not contain a 'power of sale clause'
The following is a thumbnail sketch of the law in California.
2007-06-11 19:21:35 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
No, there is no such thing as a "deficiency judgment" when you lose your house to the bank. That's why we use trust deeds in California.
2007-06-11 19:14:54 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yes.
2007-06-11 19:15:06 · answer #5 · answered by Moondog 7 · 0⤊ 0⤋
most times yes.
2007-06-11 19:14:35 · answer #6 · answered by moe h 4 · 0⤊ 0⤋