I mean I know she will move out but what happens after that will my friend still owe or have to pay?
2007-07-24 02:03:04 · 3 answers · asked by panda 6 in Business & Finance ➔ Renting & Real Estate
she lives in TN.
2007-07-24 02:11:31 · update #1
That will depend upon state law and the wording of the mortgage. Some states allow deficiency judgments and others do not.
If the mortgage contract is written "without recourse" then the lender has to accept whatever the property sells for as payment in full. A deficiency judgment would not be allowed in that situation.
2007-07-24 02:14:55 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
It depends on the equity in the house and what the bank is able to sell it for. If the house sells for enough to pay off the bank then she is liable for nothing. If however the bank sells the house for less than it is owed it will probably bring a judgment against your friend for the difference. Since your friend is in such bad shape perhaps she should consider bankruptcy, this would end all further obligations to the bank.
2007-07-24 02:10:09 · answer #2 · answered by Don 5 · 0⤊ 0⤋
questions like this require knowledge of local [state in the US] law. since you haven't told us where this is, we can't be very helpful.
some states do not allow deficiency judgments [still owe if the house sells for less than the loan balance[, others do.
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2007-07-24 02:10:19 · answer #3 · answered by Spock (rhp) 7 · 0⤊ 0⤋