What will happen if i but a new house and let my current home go into foreclosure ,not being able to sell it?
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Answer:
It will mess up your credit rating
they can attach a lien to your new house if i'm not mistaken
I would imagine that when you foreclose the current house, the lenders will pursue you for the amount you owe, and take any assets you have, which would include the second house, so you would end up with no house.
could you not rent out the first house? or stay in it and try to deal with your debts before buying again?
I doubt that you can buy a new house without selling the old one. You will need a down payment for the new one, and enough income that the bank thinks you can easily cover payments on both. If you have that much money and income, then you would be renting the old one rather than foreclosure.
you will have a forclosure on your record.if you already have the new house, the new house will NOT be effected. however, in the future, all of your other credit will be effected...7 years.
if you WANT to buy or are you paying
cash you already have?
if you need a lender to buy new--
why should a lender lend to you
if another lender lost working with you?
is that fair?
or is fair irrelevant?
If you buy a new home, but let the current home go into foreclosure?
Well you'll lose any equity you'vr built in the current one. You credit will be shot. If the short sale of your current home comes in under the loan ammount, you could still be liable for that difference.
If you absolutely cannot sell it at the Loan cost, you'd be better off selling it short yourself and just paying what ever the remaining balance. This will help save your Credit.
Is there a particular reason you can'tsell the current home? How long has the home been on the market?
Make sure you do it in that order. Once you foreclose, nobody will give you any more credit for a while.
There goes your credit right out the window. Good luck the next time you want to buy a car. Plan on having cash.
If the foreclosed property does not obtain the necessary proceeds to cover the loan amount, the lender has the option to pursue a deficiency judgment against you. If this is granted, the lender can go after your personal assets, including your new home.
Work it out with your lender now regarding the foreclosed property before getting any new properties.
Hope this helps...
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If you're going to buy a home and then foreclose on your other home, you would really mess up your credit and end up owing the lender the balance of whatever they did not receive from selling the house themselves, in addtion to related charges. If you can, buy first. Don't go into foreclosure before you close escrow on your new home. It would prevent you from purchasing your new home, cause your lender for your new home to have to back out because of credit issues. If possible, consider a short sale, where you would list your old home for less than what you owe on it. Your agent , with your authorization, would contact your lender/s and arrange to get it sold, with the lender either writing off the balance owed them, or making arrangements with you to pay it. If they write it off they could still file so that you would be liable for taxes on the shortage. You could also doing what's called a deed in lieu of foreclosure, where you hand the keys and ownership of your old house back to the lender. Not that many are willing to take back a home though; they would rather see a homeowner keep the place and continue making payments. I'm hoping you aren't depending on your home to sell to get into a new home? You may need to ask your lender to set up a bridge loan for you, where you are temporarily paying for both new and old homes till the old one sells. Talk to your lender, see what your options are, then go forward. Good luck :)
It'll depend on how quickly you can close on buying the new home. If you are already missing mortgage payments, then it will be difficult to qualify for a new home loan. But if your credit still allows you to qualify for a mortgage, then get the new house as soon as possible.
Once you start missing payments on the old house, the foreclosure process will start (especially if you're planning on letting it go into foreclosure). The bank will sell the house at a sheriff sale, and the new owners will be able to evict you and anything that's left in the old house.
You're probably really asking about the danger of the bank suing you after foreclosure and trying to take the new house. If the house doesn't sell at sheriff sale for an amount to pay off the loan, the bank may be able to sue for a deficiency judgment and come after any other assets that you have
However, banks almost never sue their former homeowners, because they know that you face foreclosure because you can't pay them, and they won't be able to collect on the judgment anyway. It costs them more time and money to sue you, and there's little chance they'll get the money anyway.
Not every state allows deficiency judgments after foreclosure, so you might want to look up your state's foreclosure laws. There may be no danger at all after the foreclosure of the old house.
Hope that helps.
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If you let it go into foreclosure before you close on the new house, you won't get the new house. No lender will qualify you for a loan.
I suggest you lower the price to the point of walking away with nothing, than to let it go back to the bank.
If you can get qualified for a new home and get moved into it, then go for it. Most of the time, though, the new lender will see the other mortgage on your credit and it'll be much harder to qualify for the new home.
If you can't sell your current home, you may want to look for a real estate investor that can help you out. They can negotiate with the lender and buy your home from you.
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