what happens in a foreclosure?

Question

if the house is sold for less then what I owe do i still have to pay the remaining balance or is at a loss?

Yes I live in california, so does that mean Im safe? Im in a real mess because of this Loan Im sure you know what Im talking about its all over the news Im not late on my payment I can still pay it but Its killing me because I have this deffered interest adding to my balance every month which is eating away at my equity so Im kinda in a mess!! Also I have 2 car payments so I dont really know what else is avalible out there for me!!

Answer 1

It depends if you live in a deficiency state. In California you do not have to pay if your house sells for less than you bought it for.
If you do not make your payments, you will lose the house, your credit will be harmed. But if you bought the house for $ 600, 000 and the bank only gets $ 400,000 in a sale after foreclosure, you are not responsible for the $ 200,000 difference in California.

Answer 2

I would like to address your first question first, "What happens in a real estate foreclosure?"

When a bank or a financial institution forecloses a property for non-payment of loan amortization, the bank takes hold of the property mortaged to them. The law gives the owner of the property one year to redeem the property before the bank or financial institution could sell the property to another party/buyer. This is called the redemption period. After this redemption period, the bank has the full right to consolidate the property and can transfer its ownership either in their name or the name of the buyer.

For your second question, If the property has been consolidated already, it means that you lose ownership of the property. The bank then sells the property to an interested buyer to recover their money from what they loaned to you. If the property was sold for less than what you owed the bank, you dont need to pay for the remaining balance unless there is a specific provision on the loan agreement that you signed when you made the loan that says so.

My advise for you is to bring the loan agreement that you signed with the bank to a lawyer for review, so that you would know your rights.

Answer 3

You will have to pay. If you sell it before foreclosure for less than you owe, you will have to bring a check to the closing for the difference. If it goes to foreclosure and the bank sells it for less than you owe, they will sue you for the difference plus legal and administrative costs (at a highly inflated rate). If you don't have the money, you will either have to declare bankruptcy and liquidate everything you have and give the bank as much as the court orders. If you don't declare bankruptcy, the judgment will follow you through your life. Every paycheck, tax refund or payment you receive will be attached. In any event, unless you sell it and pay the bank at closing, your credit is going to be trashed. Sorry. It's bad out there right now. Good luck.

Answer 4

You are in the same spot I was and you can put a motion in with the court to have the house sold immediately and he will be liable for the 5 payments at time of closing when it comes time to split. I would definitely start packing as the mortgage company could care less about anything except money. I wound up losing the home to a sale, and they didn't even make her pay the 3 months that she was given money and used the money to party instead of paying the bills, so there is no justice for good people.

Answer 5

claim bankrupcy, then you wont have to pay it. Other than that you will still owe it. It normally takes a few months for it all to happen though. Most Lawyers will not charge you for a consult and you can find out how to go about handeling it. I am sorry your going through that. Hopefully you'll have better luck in the future.

Answer 6

If the lender gets less than what you signed the loan contract for , you owe the difference / remaining balance .
Your credit report will show that as a debt and the lender will try to collect it from you .

>

Answer 7

Yes, you still have to pay the remaining balance especially in a judicial sale where a deficiency judgment has been rendered.

Answer 8

Yes you pay the balance.

Answer 9

you're credit is destroyed, you still pay the balance and wont get another home loan. so you're homeless with a mortgage.

Answer 10

The bank take your home and sells it to get what they can get out of it. You don't get anything probably. I hope that you have a lawyer.