Loans Answers

Need Info on Financial Liability after Foreclosure

Question: At this point, what I would like to know is what kind of financial >liability I face when the bank forecloses on me. Let’s say the bank sell >the condo for 90k: – Am I responsible for the difference, 30k? – Would the bank pursue deficiency judgement? – If I do get deficiency judgement against me, what does that mean? – What else should I consider?

Answer: You would be responsible for the $30k difference PLUS legal/administrative fees incurred by the bank. Call one or two RE attorneys and see if your bank has a history of pursuing the judgment. The judgment will hit your credit report and will throw you into the “bad credit” category for many years. There is NOTHING worse on your credit report than a foreclosure, not even a bankruptcy.

I have a question. I’m assuming that you have a fixed rate; let’s assume that your payment is, say, $1,200/month. This would have been your payment even if your condo were worth $130,000. Did you experience an income loss, or are you bothered by the thought of paying on a property that’s worth less than your mortgage?

Related Posts

• Mortgages – No Doc Mortgages
• question on first mortgage holder
• Conventional Mortgage Question
• Auto credit question
• Advice for lending money to family/friends?
• Interesting Offer From Mortgage Company
• Credit Debt – What to do first?
• ISLAMO-NAZIS PLAN TO DESTROY FRANCE
• Best way to get a house
• Two parties investing in multi-property, big question
• New book “Nickeled & Dimed” – opinions?
• Bankruptcy and purchasing home?

Filed under: Bad Credit