Potential Foreclosure?
Question:
Please advise?
Answer:
If it goes into foreclosure, you will still be stuck for the deficency balance (the amount of the loan and costs not covered) by the sale anyway; but you'll have the foreclosure on your history for 7-10 years.
.... not to mention if you walk away from the contract the buyer has on the house, you could be sued by them for breach of contract as well.
Sounds like you need to talk to an attorney.
You have your answers.
Not only will the foreclosure show on your credit for the next 7-years, it will make it almost impossible for you to get any other type of loan for years without making large down payments, paying huge fees and State maximum interest rates.
You need to talk to your lawyer A.S.A.P.
If everything is that far along in the sale, try getting your bank to approve a short sale. They would take less than the exact amount that they are owed, but taking a few thousand dollar hit would still cost them far less time and money than if they took it to foreclosure.
Also, get the real estate agent to drop some of his commission; that will free up a little more cash in the property. Making 2-3% in the end may not be as good as making 5-6%, but it's a whole lot better than doing all of that work for nothing.
Just see what you can do to get everyone to budge a little bit to avoid foreclosure. If the alternative is losing the deal and going into foreclosure and losing the house anyway, it's in everyones best interests to find a solution.
But if it does go into foreclosure, you won't have to pay back the amount. The bank only gets the property when they sell that at the sheriff sale, since that was the only collateral you put up for the loan. The foreclosure will stay on your credit record as a negative mark; only the original creditor or a court would be able to order it off, or you can try getting the record deleted through the credit bureaus.
Hope that helps.
ForeclosureFish
http://www.foreclosurefish.com/...
More Related Questions & Answers...