what happens when the bank forecloses on my house and sells

if I have 3 properties in the USA and I cant pay them anymore - can I foreclose on one and keep the other 2? what happens with the other 2 properties?

hi jacque,

if you decide to let one of the properties go into foreclosure, the lender will sell the property to recover the balance loan amount. if the sale proceeds are not enough to recover the amount, the deficient amount will have to be paid by you. if you fail to pay, the lender might put a lien on the other properties. instead, you can go for a deed in lieu, where you will sign over the deed to the property to the lender and this will not require you to pay the deficient amount. i think you should talk with the loss mitigation deptartment of the lending organization.

What happened to me, I was injured on the job and couldn't work. My home was foreclosed in 2003. In 2009, I received notice from State of Missouri that they considered the difference (150,000 loan and $80,000 sale price by bank) of $70,000 as income and with penalty they say I owe them $12,000. IRS says I owe them nothing. I had no job, could work, lost my home, my wife left me, no disability payment, enough workman comp to last a year. Afer that, it's been hand to mouth. At least they have nothing to take.

Hi ryamhcap,

In a regular foreclosure, if the lender fails to recover the loan amount from the auction, the borrower is held responsible for the payment of the deficient amount. The statute of limitation applicable to a written contract in the state of Missouri is 10 years. Thus, the lender has the right to come after you for the deficiency within the 10 years of foreclosure. I think you need to talk with the lender and explain your situation to them so they forgive the difference.

if foreclosed by the lender what will happen to the $200,000.00. will the lender come after me??

I currently owe around 200k on my home. I have worked with the bank and they have only given me one option of a forebearance with a balloon payment in three months. I have told them that if I do not have the money now why would I have three payments in three months all at once. A realator told me that my house could only be put on the market for 175k and probably wouldn't sell for more than 167k. If I do not own any properties within the next 10 years where would that bank come after me for money from? I was laid off and cannot make the payment.

the fact of the matter is that not every lender is going to seek recovery of its losses. if they can, they will; if they cannot, they likely won't try. in this current economic situation, we see a lot more debt forgiven than ever before. how an individual lender will act is anyone's guess, however.

What happens if I can't pay my loan and I need to foreclose, and the bank decides to put the house on the market for sale. What happens to me if they cannot sale it for the full price of the loan? Can they put a lien on my IRA, I know they can put it on property.

Hi GM,

If your house is foreclosed and sold at a price less than what you owe, the lender will come after you for the deficiency. He can get a deficiency judgment against you, can garnish your wages, put liens on your properties, etc. But he cannot come after your IRA. Your retirement accounts are safe from your creditors and lenders.

The lender does not always come after you for the deficiency. He can cancel the debt as well. In case the deficiency is forgiven, you will be liable to pay taxes on it. But you can claim exemption from taxes on this cancelled debt amount, if you have used your property as your principal place of residence.

Thanks,

Jerry

i am current in my mortgage payments but behind in my real estate taxes and home equity loan. my house is now assessed at less than what i owe on it. what will happen if i can't catch up? :?:

Hi bailey!

Welcome to forums!

If you cannot catch up on your real estate taxes and home equity loan, then the tax department may place a lien on your property and the home equity lender can foreclose the property due to the lack of payments.

Feel free to ask if you've further queries.

Sussane

can a condo board forclose on your condo for lack of payment and if so how does the bank get paid

A condo association can foreclose your property if you do not pay their association fees and other dues. Once the property is sold off at the foreclosure auction, the lender will be able to claim their dues from them.

If my house was in foreclosure but the bank that previously owned it bought it again what happens? also i am still residing in the home how long until they ask us to leave?

Welcome Guest,

The lender will send you an eviction notice. As far as I can understand, unless you receive an eviction notice, you will be able to stay in the property.