new home

pyoung1146 · Joined: 21 Oct 2009 Posts: 3 1.35 Dollars($)

my sister missed about 5 mortage payments on her initial home. She took a buyout from Ford Motor Co. and then stop payments on this initial home and purchased another home by paying cash for this second home. I told her that something don't sound right about leaving her first home without having some kind or penalty against you by leaving her first home. What kind of penalty is she subject to if there is one and what happens to this first home where just defaulted on this loan by just leaving the home??

savior70 · Posted: Fri Oct 23, 2009 6:52 am Post subject:

Hi,

Since she has defaulted on the loan and vacated the property, the mortgage holder of the first property will start a foreclosure proceeding. They will sell the property at auction to satisfy the lien. In case the sale price is not enough to cover the mortgage lien, the lender can sue her and obtain a deficiency judgment against her. They can even place a lien on her other properties like the second home she has bought. Besides, the foreclosure will also affect her credit in a negative way.

All times are GMT - 7 Hours

Page 1 of 1