what happens when the bank forecloses on my house and sells

hi guest.

welcome to the forum.

if the bank forecloses and the house is sold in less than what you owe to the bank then they may come after you for the deficiency judgment or place lien on your other properties.

btw is foreclosure already occurred? if not they why dont you ask the bank to accept deed in lieu of foreclosure? if he accepts dil then he will not come after you for the deficiency judgment.

feel free to ask if you have any further questions.

best of luck,
larry

what happens when a bank forecloses on your home and your loan is less that the value of the home

Welcome Dennis.

If your loan balance is less than the value of your home, then the lender should offer you the extra cash because you're not obligated to pay any additional amount other than what you owe.

Thanks.

It's not always as easy as the lender finding you so he can give you money back. It's up to you to keep track of the process and figure out whether you have any thing coming back.

dennis,

If you owe less than what it is worth, I would suggest selling the home yourself so that you pocket the difference. If the bank forecloses you will not get any cash out of it.

my husband has been out of work for almost a year and we barely able to pay mtg pymts what if we foreclose what happens

thank you lisa for a sense of reality on the discussion.

lisa is totally correct - if a property is foreclosed, it becomes the property of the lending institution. if it is then sold for more than the balance on the loan happened to be, then the lender makes a few dollars.

again, if you owe less than the value of the home, why not sell it yourself?

If a property in USA is foreclosed on but I am UK resident can USA take UK property for any monies owed after the USA foreclosure?

Hey Michelle,

As far as I know, your property in UK will not affected for the foreclosure on your USA property.

I had a condo foreclose in 2008. How do I report that on my IRS taxes. I'm in California

Hi Sharon!

Welcome to forums!

Did the lender forgive the deficient amount from the sale of the property? If the lender has forgiven the amount, then he will send you a 1099-c form. You will have to fill it up and report that on your IRS taxes.

Feel free to ask if you have further queries.

Sussane

i am in usa , if i foreclose my house in uk , and if it forecloses with a deficiency then will they still ask me to pay the difference if i am in usa.

Hi guest,

If you are presently residing in USA, then the lender in UK will not be able to able to place a lien on your US property. Moreover, your credit score in USA will not be affected. But in future if you try to buy a property in UK, then this foreclosure may affect your chances.

Thanks

There was a difference in what I owed on my home and what the back sold it for. Is the difference considered income?

Hi jenna!

Welcome to forums!

If the deficient amount resulting from the sale of the property is forgiven by the lender, then it can be considered as an income by the IRS. You will be charged taxes on it.

Sussane