If i walk away and let it go into foreclosure and it sells for less than the mortgage can they bank come after other assets like my car, principal residence etc.
My investment property mortgage is going adjustable. If I walk away and let it go into foreclosure can they co
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Mar
Fabio G
March 13, 2010 at 7:21 am
no but the bank will send you a 1099 tax form next year for the difference. why dont you just refinance to a fixed loan there are many out there today take advantage and dont foreclose on the home
Rick K
March 13, 2010 at 8:19 am
why not refi into a fixed mortgage?
mazziatplay
March 13, 2010 at 9:05 am
that depends on thelaw in your state. Some states, lik mine, have the option for the lender to pursue a foreclosure that provides them with a deficiency judgment allowing them to pursue collection via garnishment etc for any remaining unpaid balance after they liquidate the security for the loan.
flamingojohn
March 13, 2010 at 9:08 am
They will almost certainly place a judgement against you, but it is doubtful they can come after your other assets. I would at least try to sell it yourself for the balance though. If you think you owe more on it than the balance you can try for a short sale as well which basically gets you out of any shortage you might have.
Lovin It All
March 13, 2010 at 9:36 am
I wouldn’t let your property go into foreclosure if you really are looking to get out of it and not trying to get into a different loan program look into either short selling it to another investor, which then will give that investor the opportunity to negotiate with your lender for a lower purchase price and they can take the property off your hands or if you really do not want to go through that you can turn the house in, basically it is call deed in lieu of, which means you call your lenders and explain what your situation is if you can not make the payments or etc and then you sign the deed over to them. So there is no foreclosure processes and it does not affect your credit as badly as a foreclosure. I would look into the couple different options I am not sure where your property is located but if your housing market is slow I would really look into the short sale or just signing over the house. Hope that helps and good luck to you.