During foreclosure can the lender take other properties away from you?
Question:
Answer:
No, you took out a loan with the bank and put up the house as collateral. The mortgage covers the house, and the bank does not have recourse to any other asset or source of income besides the house.
If the property sells at sheriff sale for less than what you owe on it, they lender may be able to pursue a deficiency judgment. Then they would be able to sue for the difference and proceed with any other collection efforts that they want. Some states do not allow deficiency judgments, so check the foreclosure laws in your own state to find out what your danger is in this area.
And if you abandon the home before the foreclosure is completed, the bank can have the locks changed and make sure that the property is not damaged. If there are any assets in the property at that time, they are typically locked up in the house. But if you are living there right now, they can not change the locks or take any other assets.
Good luck.
ForeclosureFish
http://www.foreclosurefish.com/...
yes and no
NO he can't just go and take the properties away without following the law.
In order to follow the law, he can file what is called an "anticipatory breach" and demand that all of your loans become due within x number of days (30 days or whatever the clause states).since he has reason to believe that you wont be able to pay the notes on them according to the previous agreement. He will use the current foreclosure as proof.
Of course you wont be able to pay and then he will start the process on those other properties. He might be able to get the the other proceedings excellerated (sp) so that he can have the hearings within the same time frame (and charge you seperate attorney's fees for each).
Try to avoid the foreclosure on the initial property if you can. Look into a 'short sale' for the distressed property if you think you can maintain your payments on the others.
GOOD LUCK
No, but if they are taking back the house make sure your stuff is out before they repo. They will have somebody remove your stuff and just dump in on the curb in front of the house ..for all to take.
No.
PMI will cover you. Private Mortgage Insurance is required with unless you put more than 20% of the loan down as a down payment.
Of course, your credit will stink & you lose what you invested. If you are planning on buying or renting or getting any credit, you better do it ASAP. Once that shows up on your credit report, you will have to rebuild it.
lisa s gave you AND I both insights that i never even thought of. i am addressing my own answer to you as though you mean properties to be something other than other pieces of real estate that you own, okay? property has many meanings.
some states file a deficiency judgment against you after foreclosure IF they can't sell the house for the mortgage that they own, the one you quit paying.
some states do not have defiency judgments.
what they mean is that when the state does allow for it, the bank can garnish your wages until the difference is paid.
e.g., you paid $100,000 for the house putting down $10,000, which is 10%. you quit paying the mortgage when the $90k balance became $60,000. so they started foreclosure proceedings. who knows if you destroyed the house? if you did, it will be very hard to sell, particularly NOW. so if they can't get at least $60,000--say they get $58,000, you then are adjudged to owe them and to pay them $2,000, oftentimes with interest.
your furniture and car will not be taken from you. if you must, you file bankruptcy, chapter 7, to eliminate most debts, or to reorganize under chapter 13, which could prevent the foreclosure. but you need a BK lawyer to talk to about that.
so then, if you have been foreclosed on, the deficiency judgment allows the first mortgage holder (sometimes 2nd, 3rd and so on) to collect any balance due after the house got sold.
btw: all that PMI, private mortgage insurance does is cover that part of the down payment that you did not make that would raise the down to 20%. therefore, if you put 10% down, PMI only covers the 10% that you did not put down. if you eventually make up for that difference, then you demand that the bank stops charging you any PMI.
i must tell you this: try to avoid foreclosure. and try to never get evicted. those two things look worse on a credit report than even a bankruptcy does!
No i dont think they can but you never know about the fine lines in the laws.you should try and prevent a forclosure heres something i found something online on how to avoid foreclosures.. hope it helps!
http://www.derekbeisner.com/avoiding_for...
good luck!
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