will foreclosure affect the business???

whatafunnyname · Joined: 19 Jul 2007 Posts: 2 2.53 Dollars($)

If you let the bank to foreclosure on your house, will the bank may go after your business or other properties or not? can someone let me know please.

miller_st · Joined: 17 Jan 2007 Posts: 917 168.84 Dollars($)

Yes they can.

But it will depend on few things.

If the foreclosure sale does not result in recovery of full balance on the debt and lender is able to get a deficiency judgment against you for recovery of the balance amount then a lien can be placed on your other properties for recovery of that balance amount.

Miller

Niicss · Posted: Thu Jul 19, 2007 2:27 pm Post subject:

There are many options by which foreclosure can be avoided. I would say you consider those first and then if other options are not possible opt for foreclosure.

BTW, how many defaults on the loan as of now?

Have you discussed loss mitigation options with your lender?

blue · Posted: Thu Jul 19, 2007 2:35 pm Post subject:

Hi Whatafunnyname,

Welcome to Mortgagefit discussion board.

Tell us more about your situation so that we can provide suggestions on how to avoid facing foreclosure.

Has your lender started foreclosure proceedings? What he is saying on loss mitigation options? How is your financial status now?

If you want to know more about what loss mitigation options are available for you then please go through this page: Loss Mitigation - Process that helps in Avoiding Foreclosure

Do let me know if you have any other doubts.

Thanks
Blue

whatafunnyname · Joined: 19 Jul 2007 Posts: 2 2.53 Dollars($)

Thanks for suggestions.
Here is what we have more deeper: We purchased 2 houses in FL for $200,000 each. they both worth now under $140,000. We are loosing $25,000 per year in negative cash flow. Bad renters. Hard to rent or sell and so on. But we do have a business that is produsing an ok income. And we are worrying that it may be impacted by foreclosure. We are almost 3 months late. The bank told us that on 8/1/07 they will start a foreclosure process. While we can still affort to make a few more payments, does it worth it? or should we just give up right now? We offer the bank to accept the short sale offer that we have for $125k, but they telling us that we have no HARDSHIP, therefore - NO todeal.

Niicss · Posted: Thu Jul 19, 2007 3:46 pm Post subject:

In many states deficiency judgment is not allowed. So it is possible, depending upon which state you are in that the lender is not able to file a lowsuit for getting a deficiency judgment against you.

If that happnes then a lien cannot be placed on your other properties for recovery of balance amount.

carnahandavid · Joined: 21 Dec 2006 Posts: 239 58.41 Dollars($)

You can try and find someone willing to purchase the house on lease to own basis. That would be much better than letting the house go into foreclosure.

Apart from chances that lender is able to get a deficiency judgment against you, a foreclosure will also result in a drop in your credit score and your ability to get other type of loans in future.

David

Guest 0.10 Dollars($)

hanth23 · Joined: 22 Jul 2007 Posts: 23 10.95 Dollars($)

Best possible option would be to put your house on the market and try to payoff your mortgage with the proceeds of the sale, since a foreclosure will ruin your credit score and your professional life

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