I am going into foreclosure and have some questions--I live in MN--please help?

Question

If I go into foreclosure and the house doesn't sell in full and a judgement is entered against me--can they garnish my wages?

Will I be able to rent a place with a foreclosure on my credit?

The new tax law that the president is kicking around, will that help those of us that end up going into foreclosure?

My state does give the lender the right to go after me for a definciancy judgement--will they and if so what can they do to me financially?

The lender has agreed to a short sale, so if the house sells they will send me a 1099 for the difference--will that be covered through the new tax laws?

Answer 1

Before choosing to go with the foreclosure, you should look into a few other options first. Refinancing is the option that most homeowners attempt first, but credit/income and tighter lending have precluded most homeowners from qualifying for a loan right now.

Either way, you should list the house on the market just on the off-chance someone wants to purchase it before the foreclosure goes through. You can also try to work with the lender for a short sale, where you'd sell the property for less than what you owe on it. At least it will pay off the loan and save your credit a bit.

If that doesn't work, ask the lender about giving a deed in lieu of foreclosure. That works as just giving the property back to the bank, and they can't go after anything else. They accept the deed instead of foreclosing or paying the loan, so there's nothing else for them to go after. This is only slightly better than a foreclosure, but anything you can do to preserve your credit will help at this point.

It will depend on how the bank pursues the foreclosure if they can sue you for another judgment and go after any other assets. With just the foreclosure, though, they are not entitled to anything else. You pledged the house as collateral for the loan -- not your car, 401(k), or prize racehorse. So all that they can take as payment for the loan is the house.

Look up California's state foreclosure laws and consult your loan documents to determine what kind of foreclosure the bank can proceed with (Judicial or Non-Judicial). That will tell you if they can sue you afterwards and try to go after any other assets.

Banks rarely sue for deficiency judgments, though, since they know that foreclosure victims don't have a lot of extra cash or even the ability to borrow any money. It costs the lender extra time to sue you and there's no guarantee they'd be able to collect on the judgment, so most don't bother with the judgment at all.

Hope that helps.

ForeclosureFish
http://www.foreclosurefish.com/...
Source(s):
Short sales: http://www.foreclosurefish.com/blog/inde...
Deed in lieu of foreclosure: http://www.foreclosurefish.com/deedinlie...
California foreclosure law: http://www.foreclosurefish.com/ca.htm...
Deficiency judgments: http://www.foreclosurefish.com/blog/inde

Answer 2

it sounds like you have already given in to lender foreclosure, I'm not sure if this will work for you, but have you ever heard of a interest only re finance ??
For example if your mortgage payment is 1600.00 dollars, and you refinanced for an interest only loan for 5 years, you would pay about 1/3 of that 1600 dollars a month for the next 5 years, so you can try to save some money, not to mention your home.

Answer 3

The lenders have already made extensive earnings using employing originating all of those undesirable loans, and then packaging them off and advertising them to investors and hedge money. in the event that they might desire to take some losses now, that merely eats into the earnings they made out of the undesirable judgements interior the 1st place. they might have made $10 billion from undesirable loans and are actually seeing losses of $2 billion. So, their earnings has declined from $10 to $8 billion. this is probably no longer adequate to cajole them to no longer make undesirable loans interior the destiny. besides the undeniable fact that it is slightly spectacular they do no longer paintings with the materials vendors, in spite of in the event that they alter the loans and take extremely much less for a on a similar time as. It retains the residences out of foreclosure on a similar time as the genuine materials marketplace recovers, and that they are in a position to foreclose in some years if the materials vendors default back, yet with so plenty greater fairness. wish that explains it. ForeclosureFish

Answer 4

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