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If a deed in lieu of foreclosure is done can the lender come after you for any amount left owing?
Wiki User
∙ 12y ago
Yes, unless that is part of the deal.
Wiki User
∙ 12y ago
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What are the pros and cons of a short sale verses a foreclosure?
Both a foreclosure and a short sale will ruin your credit for many years. With a foreclosure, it's best to file a Chapter 7 bankruptcy to protect you from the lender. The lender has up to 10 years to come after you for the loan deficiency. For example, if you owed $200,00 on a mortgage, and it cost the lender $75,000 to re-sell your property, you could be liable for that $75,000 deficiency. On a short sale, the lender can still come after you, but the amount that is short can be issued to you on a 1099 as a "loan forgiveness" causing you to pay income tax on that money.
What are penalties of foreclosure?
You lose your home and any equity you had invested in it. If the eventual sale of the home does not cover your debt to the Lender, they may come after you for the difference. This could result in a judgment against you. Your credit score is adversely affected by the foreclosure, and possible judgment.
How long in Calif take to foreclose?
These are the main steps in a nonjudicial foreclosure, which apply to the majority of foreclosures in California: The lender must contact you and anyone else on the mortgage loan to assess your financial situation and explore your options to avoid foreclosure (called a "foreclosure avoidance assessment"). The lender cannot start the foreclosure process until at least 30 days after contacting you to make this assessment; and must advise you during that first contact that you have the right to request another meeting about how to avoid foreclosure. That meeting must be scheduled to take place within 14 days. You can authorize a lawyer, HUD-certified housing counseling agency, or other advisor to talk on your behalf with the lender about ways to avoid foreclosure. You cannot be forced to accept any plan that your representative and the lender come up with during that discussion. If you and the lender have not worked out a plan to avoid foreclosure, the lender can record a Notice of Default in the county where your home is located, at least 30 days after contacting you for the foreclosure avoidance assessment. This marks the beginning of the formal and public foreclosure process. The lender sends you a copy of this notice by certified mail within 10 business days of recording it. You then have 90 days from the date that the Notice of Default is recorded to "cure" (fix, usually by paying what is owed) the default. If you do not pay what you owe, a Notice of Sale is recorded (at least 90 days after the Notice of Default is recorded). The Notice of Sale states that the trustee will sell your home at auction in 21 days. The Notice of Sale must be sent to you by certified mail and published weekly in a newspaper of general circulation in the county where your home is located for 3 consecutive weeks before the sale date. It must also posted on your property, as well as in a public place, usually at your local courthouse. It must have the date, time, and location of the foreclosure sale; the property address; the trustee's name, address, and phone number; and a statement that the property will be sold at a public auction. At least 21 days after the date when the Notice of Sale is recorded the property can be sold at a public auction. The successful bidder must pay the full amount of the bid immediately with cash or a cashier's check. The successful bidder gets a trustee's deed once the sale is complete. The lender usually bids at the auction, in the amount of the balance due plus the foreclosure costs. If no one else bids, your home goes to the lender. Before the foreclosure process begins, the lender or loan servicer may send you letters (over the course of several months) demanding payment. Those letters are not notices of default.
How does a foreclosure proceed?
The foreclosing mortgagee can and usually does bid at the foreclosure sale. If the foreclosing mortgagee is the high bidder, it essentially pays itself up to the amount of its debt by canceling the debt to the extent of its bid. The foreclosing mortgagee only has to come up with cash if it bids more than the amount of its debt.
Can a mortgage company in Oklahoma come after a spouse if not on the loan?
Generally, no. However, it may have the right to take the property covered by the mortgage by foreclosure in the case of a default. If the lender is trying to collect from you and you did not sign the note and mortgage then you should contact an attorney who can review your situation and explain your rights and responsibilities.See related question.Generally, no. However, it may have the right to take the property covered by the mortgage by foreclosure in the case of a default. If the lender is trying to collect from you and you did not sign the note and mortgage then you should contact an attorney who can review your situation and explain your rights and responsibilities.See related question.Generally, no. However, it may have the right to take the property covered by the mortgage by foreclosure in the case of a default. If the lender is trying to collect from you and you did not sign the note and mortgage then you should contact an attorney who can review your situation and explain your rights and responsibilities.See related question.Generally, no. However, it may have the right to take the property covered by the mortgage by foreclosure in the case of a default. If the lender is trying to collect from you and you did not sign the note and mortgage then you should contact an attorney who can review your situation and explain your rights and responsibilities.See related question.
What are the pros and cons of a short sale verses a foreclosure?
Both a foreclosure and a short sale will ruin your credit for many years. With a foreclosure, it's best to file a Chapter 7 bankruptcy to protect you from the lender. The lender has up to 10 years to come after you for the loan deficiency. For example, if you owed $200,00 on a mortgage, and it cost the lender $75,000 to re-sell your property, you could be liable for that $75,000 deficiency. On a short sale, the lender can still come after you, but the amount that is short can be issued to you on a 1099 as a "loan forgiveness" causing you to pay income tax on that money.
Can the bank come after me for money after a foreclosure?
Yes. If, the amount they auction the property for is less than what you owe they will come after you for the difference.
Can you do a voluntary foreclosure and can the bank come after you for any other fees or hidden costs or can the bank attach a lien to any other property such as vehicles or an existing paid for home?
Yes, you can submit to the lender a document called a deed of foreclosure. no
What are penalties of foreclosure?
You lose your home and any equity you had invested in it. If the eventual sale of the home does not cover your debt to the Lender, they may come after you for the difference. This could result in a judgment against you. Your credit score is adversely affected by the foreclosure, and possible judgment.
Voluntary foreclosure how do i do this and does it have to be excepted?
Voluntary forclosure is when you call your lender and tell them you are voluntarily forclosing. This way the lender knows to sell the home before the bank "forcloses". I heard when the bank sells the home for a lower amount than the payoff, they can come after you to pay back the difference. By volunteering, you have open communication with the lender where the house can be put on the market asap rather than after the fact. You are off the hook but its stamped on your credit for a very long time.
It costs a bank how much money to process each foreclosure?
There is a rule of thumb that says lenders can face losses from the loan default and subsequent foreclosure that equal up to 40% of the loan amount. The actual costs will vary based on the type of home, the state where it is located, the process the lender uses and other factors. Hence the costs can vary a lot from one lender to another and from one property to another. In some states the lender can come after the borrower for any losses (deficiency judgment) while in other states the lender more or less is blocked from doing so. It is mostly decided at the point the loan is taken out as the loan documents will state what a lender can and cannot do unless there was fraud when the loan was applied for. That is why a borrower really should read the loan documents.
Can a mortgage company come back on the estate of a deceased person when the survivor - who is not an heir with JTWROS defaults on the loan?
If the decedent signed the mortgage the lender can take possession of the property by foreclosure if the mortgage isn't paid.Whether the lender can sue the estate for any deficiency depends on several factors including the law in your jurisdiction. You should ask the attorney who is handling the estate.If the decedent signed the mortgage the lender can take possession of the property by foreclosure if the mortgage isn't paid.Whether the lender can sue the estate for any deficiency depends on several factors including the law in your jurisdiction. You should ask the attorney who is handling the estate.If the decedent signed the mortgage the lender can take possession of the property by foreclosure if the mortgage isn't paid.Whether the lender can sue the estate for any deficiency depends on several factors including the law in your jurisdiction. You should ask the attorney who is handling the estate.If the decedent signed the mortgage the lender can take possession of the property by foreclosure if the mortgage isn't paid.Whether the lender can sue the estate for any deficiency depends on several factors including the law in your jurisdiction. You should ask the attorney who is handling the estate.
How long in Calif take to foreclose?
These are the main steps in a nonjudicial foreclosure, which apply to the majority of foreclosures in California: The lender must contact you and anyone else on the mortgage loan to assess your financial situation and explore your options to avoid foreclosure (called a "foreclosure avoidance assessment"). The lender cannot start the foreclosure process until at least 30 days after contacting you to make this assessment; and must advise you during that first contact that you have the right to request another meeting about how to avoid foreclosure. That meeting must be scheduled to take place within 14 days. You can authorize a lawyer, HUD-certified housing counseling agency, or other advisor to talk on your behalf with the lender about ways to avoid foreclosure. You cannot be forced to accept any plan that your representative and the lender come up with during that discussion. If you and the lender have not worked out a plan to avoid foreclosure, the lender can record a Notice of Default in the county where your home is located, at least 30 days after contacting you for the foreclosure avoidance assessment. This marks the beginning of the formal and public foreclosure process. The lender sends you a copy of this notice by certified mail within 10 business days of recording it. You then have 90 days from the date that the Notice of Default is recorded to "cure" (fix, usually by paying what is owed) the default. If you do not pay what you owe, a Notice of Sale is recorded (at least 90 days after the Notice of Default is recorded). The Notice of Sale states that the trustee will sell your home at auction in 21 days. The Notice of Sale must be sent to you by certified mail and published weekly in a newspaper of general circulation in the county where your home is located for 3 consecutive weeks before the sale date. It must also posted on your property, as well as in a public place, usually at your local courthouse. It must have the date, time, and location of the foreclosure sale; the property address; the trustee's name, address, and phone number; and a statement that the property will be sold at a public auction. At least 21 days after the date when the Notice of Sale is recorded the property can be sold at a public auction. The successful bidder must pay the full amount of the bid immediately with cash or a cashier's check. The successful bidder gets a trustee's deed once the sale is complete. The lender usually bids at the auction, in the amount of the balance due plus the foreclosure costs. If no one else bids, your home goes to the lender. Before the foreclosure process begins, the lender or loan servicer may send you letters (over the course of several months) demanding payment. Those letters are not notices of default.
How does a foreclosure proceed?
The foreclosing mortgagee can and usually does bid at the foreclosure sale. If the foreclosing mortgagee is the high bidder, it essentially pays itself up to the amount of its debt by canceling the debt to the extent of its bid. The foreclosing mortgagee only has to come up with cash if it bids more than the amount of its debt.
Can a bank come after you if you are on deed but not mortgage?
No. All the owners of property must grant a security interest in the property by signing the mortgage. If you owned the property at the time of the mortgage and didn't sign the mortgage, the lender made a serious error. The lender cannot take possession of your interest by a foreclosure and you are not responsible for paying the loan.However, if your name was added after that mortgage was granted the lender can take possession of the property by foreclosure if the mortgage is not paid, and you are out of luck. The lender cannot go to you for payment if you did not sign the mortgage and note.
Can the former owner come back to get his belongings after a foreclosure?
Can former owner claim his belongings after foreclosure and the property transfered to new owner,
Ways to Get Free Mortgage Refinancing?
These days, the topic of foreclosure is a very contentious one. There are many forms of fraud that have been exposed in the lending industry within recent months. The lending industry has been charged with all sorts of misconduct by professional organizations in many states. If you are in the process of potentially filing for foreclosure, then you may want to consider the possibility of refinancing your mortgage. A Legal Aid Service in your county can help you with the process of refinancing your mortgage. If you have no idea where to begin and make under $40,000 a year, then Legal Aid Service can help you with your foreclosure issue. A lawyer from the Legal Aid Service will be able to negotiate the terms of your mortgage with a lender. In some cases, the lender may simply reduce the principal amount that you owe on a mortgage. This will allow you to have lower monthly payments on your loan. Your payments may be reduced up to 50% after your lawyer negotiates with a lender. If you are potentially facing foreclosure, the key is to never give up. These days, challenging a lender's true ownership of your mortgage is a real possibility. A lot of courts are beginning to acknowledge that lenders do not rightfully own a person's mortgage in a lot of cases. A lot of cases center around the theme of an invalid assignment. An assignment is one way that lenders claim they can sell of mortgages to one another. What happens is that a bank sells off a mortgage after a person is unable to pay the full amount. The bank may sell off the mortgage to another bank or lender. That bank or lender will then be the one to come after the person and try to make him or her pay the full amount. The problem is that a lot of times this type of transaction is illegal and fraudulent. There are many reasons this transaction can be fraudulent, and the top reason is that another lender is unable to produce the note that displays true ownership of a mortgage. If a lender can not produce original documents, then a court may decide to rule in favor of the person who is about to lose his or her home. Do not let the banks simply foreclose on your home. Instead, seek some legal help and gain ownership over the home you deserve.
