Best Answer

The bank is exercise it's right to sell the house in lieu of coming after you. In most states, you would need to file a foreclosure lawsuit and have a court-ordered sale before the lender could sue you for any deficiency.

Adding: It is not uncommon that someone failing to pay any one debt is also delinquent on others. And everyone will be trying to be repaid by using any means possible, including forcing the boworrer to sell assets. A mortgage essentially secures the debt to that property, so that lender has first dibs on recovering his loan by receiving the proceeds of forcing sale of that asset.

However, forclosing (or forcing the sale) takes time and money. Especially if you fight it. And if the lender doesn't recover enough to repay all the costs, interest fees, etc. (a deficiency) he may try and seize another asset you have too.

In a deed in lieu of foreclosure you basically say (or should) - I will cooperate and hand over the asset now, as payment in full for the debt. Since it would pay off the entire debt, there would be no basis for the lender to force sale of another asset.

User Avatar

Wiki User

โˆ™ 2012-05-09 17:22:55
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Do you need to pay back loan after foreclosure procedure?
Write your answer...
Related questions

Procedural requirements in a foreclosure of mortgage?

Foreclosure procedure is addressed by state statutory laws. You need to search online for "your state + foreclosure procedure".

have fair crediit need a loan with time to pay it back?

have fair crediit need a loan with time to pay it back?

Need a loan but can not pay back?

If you need a loan but can't pay it back, you should not get a loan. You should rethink your 'need' and find another way to resolve it. If you borrow money that you can't pay back, that is a form of theft.

Do you have to pay back a student loan?

Yes, a loan is to be paid back, a scholarship or grant is money that does not need to be paid back.

Can you refinance a foreclosure with 0 equity?

No, this would be nearly impossible. Because the loan is in foreclosure, the homeowners' credit is typically very low, so they will not qualify for a traditional mortgage. Many lenders simply refuse to provide a new mortgage when the house is in foreclosure. The lenders that will provide a foreclosure bailout loan base their qualifications on the equity and income. Usually the home must be 65-70% loan-to-value (LTV) to qualify for a loan. Rates are typically high (11%-20% depending on the lender), and the homeowners will need to show enough income to qualify for such a payment.

Can you save your house after foreclosure notification?

Probably not. Once the loan is out of compliance, you would need to either refinance it or just pay it off.

Alternatives to Foreclosure?

Foreclosure can really hurt your credit score and make it harder for you to get a loan for a car, another home or anything else you may need. The good news is that there are alternative to help keep you out of foreclosure and keep your home. One of the best options for those who are at immediate risk of default on their home loan is a mortgage modification. A modification can lower your monthly payment, stretch out the life of your loan and even reduce the balance owed on your mortgage to help make your monthly payments more affordable.

How can one have a personal loan from a bank?

To have a personal loan from a bank you need to have a bank that you have an account with and a financial advisor at that bank. You'll meet with them to tell them why you need the loan and how you will pay it back.

If you file chapter 13 and have a foreclosure are you still able to obtain financing for a home?

Absolutely, there are many programs available to assist existing home owners as well as home buyers with financing home loans after bankruptcy and foreclosure. To obtain a home loan while currently in a chapter 13 bankruptcy it is very important to establish a good payment history. The company that will approve you for a home loan will need to have your payment history. They will also contact the trustee of your chapter 13 bankruptcy to receive permission or an ok to proceed with your home loan. To obtain a home loan after chapter 13 bankruptcy you will need to provide the following to your loan officer. Original schedules of your bankruptcy Discharge documents of your bankruptcy Proof that you have a satisfied discharge Proof that you have established new credit To obtain a home loan after a foreclosure. Maintained or established new credit Applying for an FHA Home Loan there is a waiting period of three years after the foreclosure proceedings have been completed. For Conventional Home Loans you will need to wait five years. Frank Thomas Sr. Loan Consultant 480-621-4270

What are the steps to put your house in KS into foreclosure?

Call your lender and ask for the loan servicing department. They will help you get the information you need to do this. The more notice the bank has, the better they can help you.

Should you get a foreclosure loan?

== Foreclosure loans== Beware of this situation: You can't pay your mortgage and face foreclosure. A "lender" contacts you, offering help. First, the lender requires you deed the property to him, claiming this is a temporary safety measure to prevent foreclosure. Once the lender has the deed, he owns your property. He can borrow against it or sell it to someone else. The lender can treat you as a tenant, using the mortgage payments as rent. Once you default on the payments, the lender can evict you from your own home. More opinions from FAQ Farmers: * What most homeowners do not realize is that there are government and private programs available to resolve their situation - with no need to obtain a new loan - and no need to have excellent credit. These solutions often cost much less than obtaining a new loan.

What is the recommended level in school a student should get a loan?

You need be make sure you will have a way to pay the loan back monthly. I wouldn't think you would need to get a loan until you are closer to starting school.

What happens when you stop making mortgage payments?

The bank takes your house. * After a prescribed period of time the lender will begin foreclosure proceedings. In some US states the lender does not need to go through the court to implement a foreclosure and the action can be rapid. In states that require the lender to use prescribed legal procedure, foreclosure can take several months.

What to include in a business PowerPoint?

What you need to include in your PowerPoint depends on the audience. If you are trying to get a loan then you will need to focus on how your business will make money to pay the loan back.

How do you file a lawsuit for a wrongful foreclosure?

what are the forms needed to file a wrongful foreclosure lawsuit There are no forms. A foreclosure is not filed in a small claims court, so strict rules of civil procedure apply. In other words, you will need to act like a lawyer and will be held to the same standard in all rules of court as a licensed lawyer would. Normally, any defense you would have to the foreclosure, would be expected to be pleaded in the original foreclosure suite. If based upon facts that were only discovered after the final judgment, you might be able to sue but, again, you would need an attorney.

What do you have to do to get a perkins loan?

First you need to complete your FAFSA. Then you need to ask your school financial aid office about the specific procedure at your school. Not all schools are eligible.

Is it difficult for a person with damaged credit to get a car loan?

Yes, because the car loan companies/banks will need the proof to see that the costumer can pay the loan back with ease. They need to know that the costumer will be paying them back. Most cases if someone has a good reputation/past with another case and that person have proof then it will be easier to get the loan.

If your house was in foreclosure what would be your greatest need?

My house is going through foreclosure. My biggest need is money to move and finding a place to rent.

How can you get a cash advance loan when you need it?

There are several of these businesses to choose from. You will need proof that you can repay the cash loan or put up some type title to ensure the pay back

Is it a good idea to get a payday loan online?

It is probably not a good idea to get a loan from the internet, as you will have to pay back more money then you get. It is a better idea, if you need the money, to get a loan from a bank.

If your circumstances change the day after you receive the last disbursement on your loan and you no longer need the full amount of your loan you should?

Give it back ASAP

It is better to get a short term loan from a credit union or a payday loan establishment?

It depends on how much money you need. If you can pay back the money very quickly and by your next paycheck, it is best to get the payday loan. However, if it will take between a month to three months to pay back the loan, your best option is the short term loan.

Feed back on this company by investors only good or bad?

l need feed back on good bad or the ugly in the investors market the name is tcs foreclosure's company.

In Arizona when car is repossessed do you need to pay the whole balance left on the loan or what you owe to get the vehicle back?

Depends on your bank and what the history is with the loan. They have the option to make you pay the entire amount of the loan. They can also allow you to just bring the loan current along with any other fees to get it back.

What are the risks of buying houses in foreclosure?

There are several risks of buying houses in foreclosure. Some of these include: the house may be messy and need a lot of additional repairs, you may end up with an exotic loan mortgage with soaring payments, and it may be difficult to secure a mortgage without a large down payment.

Study guides

Create a Study Guide