Posted on: 04th Aug, 2009 09:15 pm
Property bought during upswing of market. Condo conversion in Orlando. Purchaser has to relocate and cna no longer maintain. What are the ramifications of foreclosure for this individual
Hi Guest,
There are certain ramifications of foreclosure on the property. The First of all, it will affect the borrower's credit negatively. It can drop his credit by 250 points. He will not be able to qualify for a new loan for the next 2-3 years at least.
If the property is underwater i.e. if he owes more than what the property is worth, there will be a deficiency due to the foreclosure. The lender can come after him to recover the difference. They may sue him for the deficiency and get a judgment against him.
There are certain ramifications of foreclosure on the property. The First of all, it will affect the borrower's credit negatively. It can drop his credit by 250 points. He will not be able to qualify for a new loan for the next 2-3 years at least.
If the property is underwater i.e. if he owes more than what the property is worth, there will be a deficiency due to the foreclosure. The lender can come after him to recover the difference. They may sue him for the deficiency and get a judgment against him.
His salary and income will be garnished untill the recovery of the outstanding amount after the judgement, except for the money he ows through pension etc. for the livelihood.
You will loose all the money you invested in that property also.