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What recourse do you have if i own a building that is co-owned and we are divorced and it is in foreclosure and the bank is willing to hold us harmless if we turn over the deed in lieu of foreclosure?
Wiki User
∙ 14y ago
I would be very surprised if the bank is actually willing to hold you 'harmless'. Turning over a deed in lieu of foreclosure is no a 'get out of jail free card'. There are credit reporting ramifications similar to a full-blown foreclosure proceeding, and these issues will follow you for a number of years to come. DO YOUR RESEARCH! Don't believe everything the bank tells you - make sure you know what you're getting into before you sign or agree to anything. This is one of many, many articles regarding the effects of DILOF: http://homebuying.about.com/od/4closureshortsales/qt/060907SScredit.htm Best of luck.
Wiki User
∙ 14y ago
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What recourse does a second mortgage holder have when the first mortgage goes into foreclosure?
Hate to tell you, but in my state (WA), if a senior deed of trust or mortgage is foreclosed, then the inferior/junior mortgages and/or deeds of trust are foreclosed as well. That means that you have no recourse subsequent to a foreclosure. I suggest seeing an attorney immediately (see the phone book for one who gives "free consultations").
What To Ask A Foreclosure Lawyer?
Millions of Americans in the past several years have experienced foreclosure. Although it is not something anyone plans on, unpreventable life events sometimes make it a gruesome reality. When this problem is faced, money is always tight, so contacting a lawyer may seem like yet another financial burden. There are attorneys who specialize in foreclosure and work for affordable rates. For qualifying individuals, free legal aid is also available for foreclosure issues. When meeting with a foreclosure attorney, the meeting will be short, so it is important to make it count. During the initial meeting, there are some important things to understand and ask about. The most important thing to know is if the state is a recourse or non-recourse state. Non-recourse states are more buyer-friendly, while a recourse state favors the lender more. In a non-recourse state, the buyer will not have to pay excessive amounts beyond the foreclosure proceeding. They may pay nothing or a small fee. In recourse states, the buyer must pay the amount of difference between the foreclosure sale and the loan amount, which is sometimes very high. Before meeting with the foreclosure attorney, be sure to understand the difference between these states to save him or her the time of explaining it. Always ask about redemption rights immediately. In many states, after the initial filing of a foreclosure proceeding, the buyer has the right of redemption. This means they have the right to buy back the house if they pay for it in full. While it may not seem like a possibility, some attorneys may have solutions for this. The right of redemption period is usually 30 days or slightly more, so it is important to know and act quickly. When the right of redemption is missed, the property will go to public sale and be auctioned off. In a recourse state, this could be detrimental to the buyer. For this reason, the attorney will provide several suggestions and solutions. Buyers who have not been paying on their loan for very long and live in a recourse state should be sure to take the attorney's advice. It is also important to know how long the process of foreclosure will take. In some states, especially non-recourse ones, the process may take up to two years to fully complete. However, in other recourse states, the entire process may only last a few months - or less.
If an attorney fails to file paperwork on behalf of a client to stop a foreclosure can a trustee sale be reversed?
No, that followed legal process...but you may have recourse for damages against the attorney.
Can one be held liable for unpaid interest fees and other costs of a leader as well as principal balance due on a recourse loan after a foreclosure on the securing rental property?
One word answer: Yes
Does the lender of a second mortgage have any recourse if the payments become late?
Yes, they will report the late payments to the credit bureaus which will damage your credit score, and if enough payments are missed can commence a foreclosure action on the property.
If you cosigned for your husband's car loan and the car was repossessed do you have any recourse if you are divorced and a judgment was filed on both of you and you were unaware of it and never served?
You have very little recourse. As a co-signer, you are just as legally obligated to the debt whether you knew it existed or not. As a co-signer, it is incumbent on you to be aware of the status of the loan.
If my husband owns a property with his ex-wife and they share the mortgage on the property am I liable for anything if he dies or defaults on the loan?
No. If he dies and defaults on the loan the bank's recourse is to take possession of the property by foreclosure. The bank has no claim against you.
Which states are non-recourse states for mortgage debt?
Non-recourse states cannot pursue you for their financial losses. Alaska Arizona Arkansas California Colorado District of Columbia (Washington DC) Georgia [THIS IS INCORRECT. GEORGIA IS A RECOURSE STATE] Hawaii Idaho Mississippi Missouri Montana (if non-judicial foreclosure is used) Nevada - (lender can get a deficiency judgment) New Hampshire Oregon Tennessee Texas (lender can get a deficiency judgment) Virginia Washington West Virginia The following states allow non-judicial foreclosure: Georgia [Georgia allows non-judicial foreclosures] Michigan Minnesota North Carolina Rhode Island South Dakota Utah Wyoming
Is a car loan considered recourse or non-recourse debt?
I think is non recourse debt
Do you pay income taxes on rental forclosed property?
Possibly. It depends on your basis, how much depreciation you have claimed, whether the loan is recourse or non-recourse, and whether the bank is canceling the unrecovered balance of the loan. A foreclosure is treated as if you sold the property to the bank. On a recourse note, it is treated as if you sold the property for the fair market value at the time of foreclosure. On a non-recourse note, it is treated as if you sold it for the balance of the loan. (I am assuming the loan balance is more than the value of the property, otherwise you would have just sold the property and paid off the loan, right?) On a recourse note, if the bank decides not to pursue a deficiency judgment against you, then the cancelled debt (the difference between the FMV and the balance due) is taxable ordinary income (unless you meet the insolvency or bankruptcy exceptions). You'll also need to recapture depreciation, just like on an ordinary sale. Unlike a homeowner whose personal home is foreclosed upon, you will be able to claim a capital loss.
What is recourse funding?
Recourse funding is a type of loan for which collateral is placed. The difference between recourse and non-recourse funding is that in recourse funding, if the collateral sells for less than the amount left on the loan, the lender can go after other assets. In non-recourse funding, the lender would have to absorb the loss.
How can one stop home foreclosure?
The best way to stop home foreclosure is to keep up with the repayments on the mortgage. If this is not feasible, it is worth speaking to the loan company as they may be willing to alter the terms of the loan, thus preventing foreclosure from taking place. If this is not possible, it may be worth seeking legal advice (pro bono, probably) as there may be legal recourse available (mis-selling of loan, for instance) that may enable the terms to be changed, or in the best (if not slightly unlikely) case, the loan may be fully or partially written off.
