Foreclosure on a Home!?

Question:

Ok lets say I get a notice of foreclosure and I can't afford to work out a monetary agreement, I just loose the house right? Or does the bank try to collect punitive (I am just guessing) damages or something like that business related,?? Or they just take my home and that’s it? I don’t want to have to pay the mortgage company some type of compensation in the long run. I lost my job back in February and have been living off my savings until now, so I think I might have to go this route unless I get a job within the next few months making what I was making enough to pay my mortgage every month. I know you guys are not legal advisors but someone might have gone through this or knows someone who has and get give me an opinion. Thanks

Answer:
Federal Government stuff - your mortgage is not like any other monthly bill...NO they cannot come after you for the monies. The mortgage is actually called a 'deed' and is not collectable or inforceable as is a regular bill (like telephone, credit cards etc).
Ususally you have a first and maybe a second. the minute you are served with your NOD (notice of default) the second almost always automatically takes the write off...they know they will lose to the first (especially in todays economy with the high foreclosure rate).
If you don't sell the home, the financial inst will normally give you 90 days from NOD and then the property becomes Bank Owned at that point...they can sell or auction or hang on to it.
You walk away with the NOD on your credit.
Federal law states they cannot come after you for the short fall...and in addition you are eligible to purchase another property 24 months after the foreclosure is complete (if anyone will approve you).
What is happening now - with all the foreclosures and people just walking away from their homes has happened several other times in my life time.many many many of these people have repurchased at a later date.

Good luck

The loan company will forclose and sell the house -- if the purchase price of the home does not pay off your mortgage you will owe the difference.

Okay lets say you owe 150,000 on the home. Say the bank sets the starting price at auction at 125,000. (yes this is totally legal).

If somebody buys it for 126,000 you owe the bank nothing. If nobody buys it at 125,000. You have a deficiency to the bank for 25,000. Immediately they will file what is call a deficiency judgement against you for that amount.

Call a couple real estate agents and see if you can work out a short sale. A short sale is the bank reducing the price short of foreclouser. And you sell it to somebody else. The bank discounts the price and you are set.

But if if does foreclose you will owe anything difference between what you owe now and what the bank offers if they get it back. It might be 100,000 dollars and trust me they wont start the price with what you owe. They dont want the house. If they take it, it will cost you.

Sorry but good luck

If you have any equity in the house, you could try taking out an equity loan. You may not be approved since you have no job though. You could also try refinancing the home. If it does go to foreclosure, they sell it, usually on the courthouse steps, and if it sells for less than you owe (which it most likely will) you will owe the balance. If you don't pay the balance in the short amount of time they'll give you to pay it, they can sue you. It's a bad situation to be in, and I don't envy you. Just try to keep your chin up!

What are your prospects for employment? First, you need to go to your lender and ask them to work out something to help get you buy, Often they will allow you to miss a few payments and add the missed ones to the back of the mortgage. Then you should decide if you will be able to pay the payments in the near future. If not, you can operate a short sale, with no income, you could walk away without forclosure on your record and not owing money. Just talk to a realtor in your area. If it is San Diego, contact me

I would try to sell your home if you have time. This will make sure that your credit stays intact, and maybe you could get a little cash in your pocket as well. If you are in a severe time crunch you could try to find someone who will buy your house for cash (either a business that does this or just let some local Realtors know about your situation). They would probably give you less than market value but enough to cover your loan and give you a small amount of money to boot. This is a far better alternative than foreclosure.

As far as punitive damages go, there shouldn't be any that the bank could come after you for. The bank took a chance when they lent you money. This is the reason they rely so heavily on your credit score. The banks won't regularly lend more than the house is worth so in the case they have to take possession of it they can sell it and recoup most, if not all, of their cost. Banks do not want to have to do this. You should also check in with them and tell them of your situation and see if they can work with you.

Foreclosure on a Home!?

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