If your house goes into forclosure and does not sell at auction what are you responsible for?
Sunday, February 28th, 2010 at
5:01 pm
If you have both a moortgage and a 2nd are you still financially responsible for the amt owed? even when it has gone back to the bank?
Quick House Sale
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Tagged with: Amt • Auction • Forclosure
Filed under: houseauction
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Yes. Usually, if it is foreclosed on, the bank auctions it, takes that money and applies it to your balance, and then you are responsible for the difference. If it did not sell at auction, you they may try to auction it again or short sell, in either case you are still reliable for some part, either the whole or difference. Good luck with your situation. I know this must be a really emotional time. A hint to continue with life: Read Financial Peace by Dave Ramsey. God Bless.
This varies from state to state as well as the terms of the mortgage. You probably need to consult an attorney.
Even if it does sell at auction, if it doesn’t sell for enough to cover both mortgages there can still be a problem for you.
If it sales at auction you can be resp. for the difference of the original loan amount and the amount the home sold for at auction…late fees and penalties legal fees and property taxes. If it does not sell you can be resp for the above also.
If it is a half way decent home it will sell they will keep taking bids and lowering the price until it does..
The primary lien holder (mortgage co) is the one doing the negations…the 2nd mortgage company may not get anything form the sale and that leaves you owing the full amt..and all
the other fees I mentioned above. The balance of all this of course goes to all the credit b…once it is all done and over with get a copy of your credit report and I am sure all of the
fees will be there….some people have found that filing bankruptcy is the only way to clear your credit and start over…….good luck