My friend and her husband lost their home to foreclosure. My sister is looking to buy a foreclosure in the same city.
For example: What if my sister buys that same house and she also loses it to foreclosure? In addition, another person buys it after her, and also loses it to foreclosure?
Does each person that buys it each time, take over the last owner's payments?
If someone buys a house that had 4 previous foreclosures, will they get to make fewer or smaller payments?
Does anyone know about multiple foreclosures on the same house?
2007-12-07 13:35:33 · 7 answers · asked by LAgirl 3 in Business & Finance ➔ Renting & Real Estate
It doesn't work that way. When a house is foreclosed, ownership of the property is taken by the bank or lender who financed the property. It is then sold to a new owner, who starts all over with a new mortgage. If that owner also loses it to foreclosure, the same thing happens again.
To answer your question, there is no connection financially to any previous mortgage when a house is foreclosed and resold.
2007-12-07 14:16:42 · answer #1 · answered by acermill 7 · 3⤊ 2⤋
I think I understand your train of thought, but it doesn't work that way.
When a house forecloses, it is essentially changing ownership. That owner (the bank) sells the property. It is an entirely new transaction, unaffected by the previous foreclosure. It's a new mortgage, and many lenders will not relend on that house, so the mortgage will be held by a new lender. So, no to taking over payments.
To take over payments, the mortgage has to be assumable, and there are not that many assumable mortgages out there.
There are no limits to the number of times a particular house can foreclose, and the foreclosures have ZERO effect on the payments. The amount of the payment and the number of payments are agreed to when the mortgage is signed, and whether the house has been foreclosed on does not matter at all.
2007-12-07 18:45:16 · answer #2 · answered by godged 7 · 1⤊ 1⤋
foreclosure means that a lender takes back a home from the owner because the owner can no longer afford the payments. Each purchase of the home, regardless of it's a pre-foreclosure, foreclosure or normal sale, will have a buying price. That price will determine your payments based on your down payment, terms and interest rate. Just because the house was foreclosed on 4 times doesn't mean the 5th person will get smaller payments.
Regards
2007-12-07 13:44:41 · answer #3 · answered by Anonymous · 1⤊ 1⤋
a property can be foreclosed on as many times as the different borrowers default. no one takes over a mortgage in a foreclosure unless the previous lender agrees, and that is unusual. no you do not get smaller or fewer payments, it all depends on what you pay for the house and what the lender will accept. i have seen numerous foreclosures on one property.
2007-12-07 13:41:53 · answer #4 · answered by Anonymous · 1⤊ 1⤋
When you buy a foreclosed property, you have to pay off the outstanding loan with either cash or another loan that the buyer takes out.
If that buyer fails to make the payments on their loan then the process starts all over again with paying of the outstanding loan with a new loan from a new owner....
So to answer your questions a house can be foreclosed on as many times as it takes for the lenders to get their money.....
2007-12-07 13:44:16 · answer #5 · answered by Taz 4 · 1⤊ 1⤋
A house can be foreclosed on as many times as it is bought and MORE. Each buyer MAY get a loan against the property and if they do not make the payments IT WILL BE foreclosed against the loan. And it can be "foreclosed" on without even having a loan against it. Yo can ay 100% cash for the purchase but if you fail to pay the property taxs, the IRS, the trash or water bill then each of those companies can foreclose on the house for unpaid debt.
The house does NOT get cheaper regardless of how much was owed against the loan that was foreclosed because the bank being the new owner can sell it for ANY amount that the market will bear; meaning whatever they can get a buyer to pay for it. So the bank can foreclose on 100K of unpaid debt and resell for a profit IF the market value of the house is higher. And banks DO try to make aprofit if possible to offest the loss they take on other houses.
2007-12-07 13:46:29 · answer #6 · answered by Jerrold J 3 · 1⤊ 3⤋
As long as someone is willing to lend the legal owner money that is secured by the property, the property will continue to be foreclosed if the owner fails to abide by the conditions of the loan (such as, make payments on a timely basis) and the lender decides to foreclose on the loan and seize the property.
2007-12-07 15:32:02 · answer #7 · answered by therainbowseeker 4 · 1⤊ 1⤋