Posted on: 26th Jan, 2011 02:25 pm
So if the Fair Market Value (FMV) is greater than the Balance of Principal Outstanding (BPO), what happen then?
Also, what happen if you have filed for BK and all personal debts were covered under that BK?
The bank says the FMV is $510k but they have the house on the market for $625k, what happens to the difference? Does the bank automatically get that?
Also, what happen if you have filed for BK and all personal debts were covered under that BK?
The bank says the FMV is $510k but they have the house on the market for $625k, what happens to the difference? Does the bank automatically get that?
Hi mcnanie!
Welcome to forums!
If the FMV is greater than that of the outstanding balance, it means that there are chances that the lender has sold off the property for a profit. He will recover his dues in full and the extra amount will be given back to him.
In case of bankruptcy, the extra amount gained from the sale of the property will be used to pay off other creditors.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If the FMV is greater than that of the outstanding balance, it means that there are chances that the lender has sold off the property for a profit. He will recover his dues in full and the extra amount will be given back to him.
In case of bankruptcy, the extra amount gained from the sale of the property will be used to pay off other creditors.
Feel free to ask if you've further queries.
Sussane