Posted on: 23rd Aug, 2007 01:54 pm
my parents own the house i live in i cant pay the mrg the house is tring to be sold in short sale but we just found out about tax liabilitys cant afford this so now what if they forclose can the bank take my parents primary residence? how can they protect their home can they quck claim it to me or my sister nwhat about deed in lie of
"how can they protect their home can they quck claim it to me or my sister"
Well quit claiming the house to you or your sister will not change much. The house is the collateral for the mortgage and lender holds the right to sell the house and recover his balance amount if borrower is not able to make the payments.
So even if your parents quit claim it to you, lender will be able to sell the house.
Your parents own both the house, if with foreclosure of this house, the total mortgage balance is not recovered then the lender can sue for getting a deficiency judgment.
If he is able to get the judgment then a lien can be placed on their other personal as well as real property for recovery of the balance amount.
Well quit claiming the house to you or your sister will not change much. The house is the collateral for the mortgage and lender holds the right to sell the house and recover his balance amount if borrower is not able to make the payments.
So even if your parents quit claim it to you, lender will be able to sell the house.
Your parents own both the house, if with foreclosure of this house, the total mortgage balance is not recovered then the lender can sue for getting a deficiency judgment.
If he is able to get the judgment then a lien can be placed on their other personal as well as real property for recovery of the balance amount.
it would be better to see if the lender would agree to take the house by way of a deed in lieu of foreclosure.
if a lender agrees to a dil then normally he will waive his rights to sue the borrower to get a deficiency judgment.
when you discuss deed in lieu option with the lender inquire whether he will agree to waive his rights to claim deficiency judgment.
if a lender agrees to a dil then normally he will waive his rights to sue the borrower to get a deficiency judgment.
when you discuss deed in lieu option with the lender inquire whether he will agree to waive his rights to claim deficiency judgment.
If they let the home go through foreclosure, IRS will be sending a bill, perhaps even larger. Other than filing chapter 7, I don't think you can get out of that friendly 1099.
Hi Kim,
Foreclosure occurs on those properties which are at default. I guess in your case, the foreclosure is going to happen on the house where you reside and on which you are not able to pay off the loan. So the bank cannot take away the primary residence of your parents as it is not in foreclosure. Incase if your parents are also on the loan along with you, it will affect their score as a result of foreclosure.
Foreclosure occurs on those properties which are at default. I guess in your case, the foreclosure is going to happen on the house where you reside and on which you are not able to pay off the loan. So the bank cannot take away the primary residence of your parents as it is not in foreclosure. Incase if your parents are also on the loan along with you, it will affect their score as a result of foreclosure.
My Name is on the deed of my house but not the mortgage. My husbands name is on the mortgage but not the deed. Do I own the house with out a lien? what if he claims bankrupcy?
Hello Laura,
Your husband is not on the deed but he has got the mortgage, how is this possible?
Your husband is not on the deed but he has got the mortgage, how is this possible?
Laura,
If you changed the deed after you got the mortgage you could be in default of the original agreement. If the bank finds out they could force the sale immediately and call the full amount due.
And no you don't own the house without a lien. The lender will still have the right to it no matter what happens until the mortgage is released.
If you changed the deed after you got the mortgage you could be in default of the original agreement. If the bank finds out they could force the sale immediately and call the full amount due.
And no you don't own the house without a lien. The lender will still have the right to it no matter what happens until the mortgage is released.
