Does a foreclosure affect other assets,can they be taken?
Question:
Answer:
Yes and No. The foreclosure itself relates only to the collateral specified in the mortgage agreement. Hence, the house, land, and appurtenant 'permanent fixtures' are the collateral which can be foreclosed upon.
However, let us assume that upon foreclosure, the bank obtained only 80% of the monies due to it from the balance of the loan owed. The bank MAY seek a personal judgment in a court of law for the remaining difference owed, and in THAT situation, other assets may become in jeopardy.
When a house is repossessed then all the items that are not deemed personal items are part of the house and, yes, they are taken back.
Generally, all things permanently attached to the house and the land are part of the house.
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Good Luck!!
a foreclosure property was taken from the previous owners because they didn't pay theyre mortgage, and when you buy it the money you spend on the property goes to paying it off so they will not take it away from you, because the problem is fixed. most of the foreclosure properties i see are in poor (fix up) condition, but i really think thats just the area i live in, it isn't neccessarily a bad property because it has been forclosed. just look around if you see something you like you can get a really good deal with a foreclosure
Yes and No...
If they are foreclosing on your car loan, your car and any asset you used as collateral are gone...but anything in the car you can usually be permitted to recover...with supervision from the bank, or a designated official.
If they are foreclosing on your mortgate, they will sell the house and as much of the contents as they can. What doesn't sell, and the cash in excess of the amount owed will be remitted back to you.
Now, in either case...if you own three houses and they forclose on one, they can NOT touch the other two...unless you used them as collateral on the loan for the third house.
That having been said, depending on the bank's reputation, the sheriff *may* let you take personal items and furniture out of the house if that is what you've lost.
Now, if the foeclosure has not yet occurred, and you come into a sudden windfall - enough to repay the loan in it's entirety, then the forclosure can (usually) be avoided by paying-off the loan. But, if the sheriff has already sealed the home / taken the car/etc, then your only hope is to buy back as much as you can at the forthcoming auction. If you've been a good neighbour and friend, you *may* be able to hope that the community comes out to help you. If that happens...they will expect some serious payback at a later date, but not be so crass as to come right out and tell you that.
Foreclosure affects the property and those items associated with the property only. It does not affect personal property and possessions (i.e., clothing, furniture, car, etc.)
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