and then move in to the one you just got approved for and forclose on the home that you presently live in can they take the home you just moved into away? Or can they kick you out of that house once they realize that you forclosed on the house that you was living in?
2007-07-03 06:22:44 · 4 answers · asked by T 6 in Business & Finance ➔ Renting & Real Estate
Look I would never do this if it wasn't for the fact that we can no long afford to live in the house we live in now. We talked to a bank last night that was pretty sure they could get us approved for a home that we are liking and right now we are trying to sell our house, but if it doesn't sell soon there is nothing else we can do but foreclose on the house. If we already get the loan for the other house, close on it, and then foreclose on the other house, that is what I was pretty much asking about. If we did close on the house that we are liking and then foreclose on this one what would happen. (I know it's a very bad thing to do but when you can't afford to live there what else is there to do?)
2007-07-03 07:05:50 · update #1
As long as your new approval and mortgage for the new home was based on all true facts and you did not lie on your loan application about anything, you will be fine. However, if you lied in order to obtain your new home about anything, your income, your job, or anything if the bank finds out you lied on your application, then they can demand the loan be paid in full based on the fact that you lied to get your new loan. Usually, this will never come into question unless you begin to fall behind on your new mortgage loan.
Your old mortgage company does have the right to sue you if there is a difference between what you owed on your old home that you let the bank foreclose on and the amount that they sell the home for at auction, although most lenders don't usually seek a lawsuit to try and obtain this difference. Also, if you let your old mortgage go and the bank forecloses on that home, most likely you will receive a 1099c form, a cancellation of debt form, in the amount of the negative difference between what was owed on that home and how much they sell the home for. This money will need to be reported on your tax returns and you will have to pay taxes on this money as though it was "normal" income.
2007-07-03 06:33:17 · answer #1 · answered by dzwreck 4 · 0⤊ 0⤋
Getting approved and closing the loan are two different things. If you were able to close the loan on your new place, the cant forclose on it for not paying for your old place. I agree with the comment someone else made about how its no wonder the housing/mortgage market is so screwed up with people like you out there.
http://mrjjones.net
2007-07-03 13:30:51 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It would be very surprising if you got approved for a home loan when you already have one that's going into foreclosure. If the timing was perfect, it might slip by.
Once you have closed on the new home, they probably couldn't back out. But at least up to the closing time, the lender probably could based on your not giving them complete information.
2007-07-03 13:27:57 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
With people like you out there you wonder why the housing market is having problems.. LOL.
Personally I dont see how you could have done this without defrauding somehow. Either that or you just had the most imcompetent mortgage lender in the world. His job is in serious jeopardy.
2007-07-03 13:27:23 · answer #4 · answered by Anonymous · 2⤊ 0⤋