Social Connection
what happens when your home goes to foreclosure and they don’t sell it for the amount you owe?
December 3rd, 2011 | 
Author: Question by Mr Clean: what happens when your home goes to foreclosure and they don’t sell it for the amount you owe?
What happens when your home goes into foreclosure and they don’t sell it for the amount of the note? Are the borrowers still responsible for the balance of the note?
Best answer:
Answer by Vegas Jimmy
Yep.
Give your answer to this question below!
Popular Posts:
- Stocks Posting Sharp Losses In Early Afternoon Trading – U.S. Commentary
- TIer 5 Unemployment Extension Update 05/15/2010
- How does one qualify to receive the FED-ED unemployment insurance extension in California?
- NCESC Unemployment Benefits – www.ncesc.com « Breaking News
- How can i get money?I am a jobless person and don’t have any source of income with me.?
Tags:
if you are ‘upside down’ on your payments & the bank forecloses, you still owe them the money. It does not disappear (the debt you owe). However, you can file BK7 aka Chapter 7 bankruptcy to wipe out any & all debt. It depends on what state you live in, whether you get to keep certain things or not.
There are too many variatables to tell you this.
For the most part the answer is yes. These people were given cash money, which they spent and then are refusing to repay.
they will either send you a bill or forgive the debt – if they forgive the balance, then you have to claim that as income and pay income tax on it – they will send you a 1099/1098
You are speaking of a deficiency judgment. Depending on what state you are located in and the type foreclosure procedure your lender used will depend on if a deficiency judgment would be filed against you.
If your lender used the non-judicial foreclosure procedure then most lenders would not legally be allowed to request a deficiency judgment against you.
If you got a document direct from your lender and not from a court or judge then your lender probably used the non-judicial foreclosure procedure.
You will probably get a 1099 from your lender indicating that you had a gain, which you must file with your current year income taxes. Thus will be the difference between what your loan balance was and the amount your property actually sold for at the auction.
If your lender used the judicial foreclosure procedure then legally in most states they could file for a deficiency judgment against you. Again even though some states allow the lender to file a deficiency judgment in judicial foreclosure states some don’t.
If you got a document from a court signed by a judge then your lender used the judicial foreclosure procedure.
I hope this has been of some benefit to you, good luck.
“FIGHT ON”
You no longer have a home but are still responsible for the difference of what YOU owed, compared to what it sold for. They can either come after you for the money, or report it to the IRS as un earned income and you will be responsible for the taxes on it (Taxed at the I got a bonus rate of around 30%0
Yes they could be. However, there were law’s enacted by Obama that put the brakes on that. You might dig for that information.
Like so many people right now, me and my husband where about to lose our home
but we went through a company to lower our mortgage payment, they also helped with
our finances (debt consolidation). I will give you the company that we used, very
reputable and i have a good friend who is going through the same process. Hope
this helps:) http://Expert-Loan-Modifications.tk