Posted on: 21st Oct, 2009 07:52 pm
I'm upside down on the mortgage and in process of selling home. I will probably end up with 20 or 25 k balance. Is there help or a program for this. The market crashed and my appraisal is in the tank? Do you know of any assistance or advice.
Please reply
Thank you very much
Alan
Please reply
Thank you very much
Alan
I've heard that in the USA you can have "walk away" mortgages where the lender can't come after you if the house sells for less than the mortgage - I'm not sure if this is widespread standard practice or only applies to some mortgages, but if you have such a mortgage you don't need to worry too much.
Perhaps someone here could enlighten me further on this?
If you are going to have to pay the balance you could either look at making a repyment plan with the lender or look into bankrupty options - CH7 would wipe the debt I'm pretty certain but would also wipe out your credit for a long time.
Perhaps someone here could enlighten me further on this?
If you are going to have to pay the balance you could either look at making a repyment plan with the lender or look into bankrupty options - CH7 would wipe the debt I'm pretty certain but would also wipe out your credit for a long time.
Hi Guest,
If your house is sold for less than what is owed on the mortgage, you will be responsible for the deficiency. The lender may come after you for the deficiency, or they may forgive it, depending on what type of loan it is. If it is a recourse loan, the lender can come after you to recover the deficient amount. In case it is a non-recourse loan, you will not have to pay off the deficiency. Certain states also have anti-deficiency laws which prevent the lender from coming after you. If your mortgage is a purchase mortgage and your state has strict anti-deficiency laws, you can claim protection against deficiency judgments.
If your house is sold for less than what is owed on the mortgage, you will be responsible for the deficiency. The lender may come after you for the deficiency, or they may forgive it, depending on what type of loan it is. If it is a recourse loan, the lender can come after you to recover the deficient amount. In case it is a non-recourse loan, you will not have to pay off the deficiency. Certain states also have anti-deficiency laws which prevent the lender from coming after you. If your mortgage is a purchase mortgage and your state has strict anti-deficiency laws, you can claim protection against deficiency judgments.