Upcoming Foreclosures

real estate foreclosures?

Do you still have to owe the money in which u purchased the home back to bank if you foreclose? Would it be better to sell it for half the price of what you bought it for? I don't understnad this stuff.

Public Comments

1. Yes, bank can get a judgment for deficiency--meaning if you sell for less than you owe them. Probably better to do a deed in lieu of foreclosure. TALK to your lender, see what your options are, what you can work out. TALK to local consumer credit agency to see what your options are.
2. If you go all the way through foreclosure then you are not likely to owe any money to the bank. There are times, however, where the auction doesn't bring enough money to satisfy the bank loan. It would be best to find a real estate agent in your area who can help you get rid of the property before it goes into foreclosure. Selling the property for half will still leave you with the debt and wouldn't likely succeed anyway because the bank would not release their lien. So your best bet again is to find a good real estate agent!
3. Do you still have to owe the money in which u purchased the home back to bank if you foreclose? – Maybe. Depends on your state’s laws. Would it be better to sell it for half the price of what you bought it for? –Not really. You either have to pony up the money to cover the difference (chances are you wouldn’t’ be in foreclosure if you had it) or get your lender to agree to a short sale where they are agreeing to take a loss on the sale. Obviously banks aren’t a big fan of this and are very resistant.
4. If your state is a 'non-recourse' state, as most are, then you will not be liable for a deficiency if your foreclosure nets too little to pay the loan in full. Assuming this is your primary residence and the loan foreclosing is a purchase loan, not a refi or equity loan. It is better for your credit if you can arrange a short sale. Banks would rather cooperate with that than get another foreclosure back. Check your legal situation and talk to your lender.
5. Read this. It will explain a lot about why you can't just walk away from the house. http://www.washingtonpost.com/wp-dyn/content/article/2008/04/11/AR2008041101914.html