My house is in foreclosure and going to auction in 3 weeks, can the mortgage company come after me for?
rwayne45 asked: My house is in foreclosure. It will be auctioned in 3 weeks. The bank would like me to try and sell it in the next 3 weeks, which is i...
rwayne45 asked:
My house is in foreclosure. It will be auctioned in 3 weeks. The bank would like me to try and sell it in the next 3 weeks, which is impossible. They have said if there is an offer made on the house before the auction, they will forgive the difference in sale price vs. mortgage balance. If I let it foreclose they are saying they will come after me for the difference. How do I know if I have a non recourse loan-I live in Calif. or what can they expect to get from me if I don’t have even enough money to pay my mortgage. I am definitely worried about them trying to take what little amount of anything I have left or garnishing my wages. Can anyone help or know the answers?
Thank you!
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My house is in foreclosure. It will be auctioned in 3 weeks. The bank would like me to try and sell it in the next 3 weeks, which is impossible. They have said if there is an offer made on the house before the auction, they will forgive the difference in sale price vs. mortgage balance. If I let it foreclose they are saying they will come after me for the difference. How do I know if I have a non recourse loan-I live in Calif. or what can they expect to get from me if I don’t have even enough money to pay my mortgage. I am definitely worried about them trying to take what little amount of anything I have left or garnishing my wages. Can anyone help or know the answers?
Thank you!
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Kansieo.com
It is rare for a lender to file for deficiency judgment. It costs them money and if they don’t have reason to assume you can pay them, they generally will not file for deficiency.
As for your “short sale”, you may ask an investor to make an offer.
If your house is currently listed, drop the price 20% and see what happens.
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I would venture a guess to say that if the bank says they can do it, they certainly can, I’d do my best to sell, even if you have to sell cheap.
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You’ll need to read the terms of your contract to see if you have a non-recourse loan.
It is possible the lender could either sue you for the balance, or send you a 1099 for the difference of what the house sold for, so you pay tax on that as income.
What it sounds like the bank is offering is a short sale. Meaning if the house sells for less than what you owe, they will accept that. Don’t expect the bank to accept $100,000 on your $400,000 mortgage balance, isn’t going to happen. It has to be a reasonable offer.
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I work for a loan company, and we will tell our customers whatever it takes to make them pay. How long have they been threatening you? How far are you behind? If they don’t send you something in writing that has been NOTARIZED, then they can’t do anything. But until then, to keep your credit in good standing, try to sell the house if you can’t afford the mortage, and maybe someone will buy it for more than you owe on it. And you can use that money for a downpayment for a apartment or something…just a suggestions
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