2007-08-31 08:17:08 · 8 answers · asked by momokins 1 in Business & Finance ➔ Renting & Real Estate
Yes, what happens is the lender will sell the home for what you owe plus other cost factored in. You would owe the difference of what they actually sold the property for plus their costs. This also affects your credit and you will not be able to purchase another property because this will show up as a lien on Title and will cloud the title until its paid off.
2007-08-31 08:45:10 · answer #1 · answered by Anonymous · 0⤊ 0⤋
YES YES YES...
There are two different agreements you signed at your closing. The first was a promise to repay a large loan. The second allowed the bank to foreclose on your property if you didn't pay. Just because they executed that second agreement does not change the fact you obligated yourself on the first.
A few states do not allow the lender to collect, but most do. They can get what is called a "deficiency judgment" against you for the difference, plus foreclosure costs and collection fees.
2007-08-31 15:24:17 · answer #2 · answered by CJKatl 4 · 0⤊ 0⤋
Yes, the lender can get a default judgment on you. You have several options when facing foreclosure. Letting it go to auction is probably the worst option.
You could work out a forbearance agreement with the lender, you could sell the house to an investor on a "short sale", you could give the deed back to the lender in lieu of foreclosure...
2007-08-31 16:15:18 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If the mortgage company sells the house for less than the mortgage payoff ... then yes, you the original borrower is liable for the difference.
2007-08-31 15:25:10 · answer #4 · answered by CPA/PFS 2 · 0⤊ 0⤋
Yes the home will go to auction, what is left will be owed by you, if written off then it will be deemed as income and thus taxable at the bonus rate of about 30%. Either way you are going to have to pay thousands. Just depends on who
2007-08-31 18:55:27 · answer #5 · answered by Pengy 7 · 0⤊ 1⤋
I beleive the short answer is yes, They can auction the house and make you pay the difference unless you file bankruptcy. You can also file bankruptcy and keep the house if you don't include it in the suit,
2007-08-31 15:26:46 · answer #6 · answered by Amy N 1 · 0⤊ 0⤋
Yes, and you could be taxed for the money as income if it's written off, unless you can prove insolvency.
2007-08-31 15:24:57 · answer #7 · answered by cnsdubie 6 · 0⤊ 0⤋
Depends on the state. In my state California, the answer is NO if it was a purchase money loan.
2007-08-31 16:35:44 · answer #8 · answered by Anonymous · 0⤊ 1⤋
yes indeedy!
2007-08-31 15:33:57 · answer #9 · answered by Alterfemego 7 · 0⤊ 0⤋