2007-07-27 19:12:54 · 6 answers · asked by hahaman 2 in Business & Finance ➔ Renting & Real Estate
yes....you lose all (property, equity, etc)
2007-07-27 19:15:36 · answer #1 · answered by Blue October 6 · 0⤊ 0⤋
The mortgage holder is not going to lose money because you defaulted. Look at the contract you signed and that is what will happen. If you don't have a copy of the contract, ask for a copy and read it carefully. If you want to save your equity, why don't you sell your house before you lose it? Hopefully, it is worth what you paid for it and it will pay off the loan and what's left over is yours. If you deal with the bank, you will not fare so good.
2007-07-27 19:21:25 · answer #2 · answered by towanda 7 · 0⤊ 0⤋
Maybe...if they sell your house for what it is worth (ie apraised value) then they would legally have to pay you for any amount over the mortgage value they got for the house (obviously they would find a way to tack on fees and interest you didn't pay thru default).
The problem is that they never get the apraised value of the home, the rarely even get the amount you owe on the mortgage value for the house, so even if you had equity built up in the home, because you defaulted and lost the right to sell the house for what it is worth they can sell it for less. Then the mortgage company comes after you for the deficiancy balance that you owe (the differance between what they got and what you owed).
2007-07-27 19:21:01 · answer #3 · answered by Anonymous · 0⤊ 0⤋
What equity you have goes to the lender if you are foreclosed on. Also, when the property is auctioned off, say for 60,000 and you owe 125,000 then the lender will sue you for the difference plus the legal bills. Therefore you will still be paying for a property that you don't own. Another result is that a lot of places that rent or lease will not be availabe to you since they do a credit check in their consideration of the deal and will see the foreclosed listing on your credit report.
In other words, do "anything" you can to avoid this trap.
2007-07-27 19:30:00 · answer #4 · answered by johnny b good 4 · 0⤊ 0⤋
It depends on how much is owing, how much the property is sold for, and how much equity is in there already (which is based on how much the property is worth).
For example, I'll use some "extreme" numbers to illustrate the point. Let's say you bought the house for $400,000, and you've paid off $250,000, so now $150,000 is still owing on it. The house has increased in value and is now worth $900,000. The bank can easily sell it for $750,000 which would be below market and they should only be able to take the $150,000 that they are owed, leaving you with $600,000. *THAT PART IS DEPENDENT ON YOUR LOCAL LAWS*
However, this extreme example is almost NEVER the case. It's usually more like you've bought the house for $400,000, and you've paid off $50,000, so now $350,000 is still owing on it. The house has kept it's value and is still worth $400,000. The bank can easily sell it for $350,000 which would be below market and they can take it all since that's what they are owed, leaving you with $0.
2007-07-27 20:53:03 · answer #5 · answered by Mister Sarcastic 4 · 0⤊ 0⤋
duh...of course, the bank or loan holder will sell the property,
if by some miracle they actually make more than you owe,
then you may get some money. But the odds are really
against you on that.
2007-07-27 19:16:56 · answer #6 · answered by Caiman94941 4 · 0⤊ 0⤋