Posts Tagged ‘Foreclosure’

Question:  My husband and I own a condo in Florida. We paid $163,000 and it is now worth $30,000. It costs us about $20,000 to keep up yearly. We are really struggling to make the payments and are thinking that we just can’t anymore. I am really worried. We own a house in New York and it has some equity (maybe $100,000). Can they come after my house in NY and put a lien or judgement on it if we foreclose? We didn’t use the house or anything from NY for the mortgage in Florida. Thanks. Also, our only income is from SS Disability and a pension.

Answer:  - This is unfortunate. You like many others have had the same thing happen to them. It’s hard to suggest what to do in this case… all you can do is all you can do. If you can’t afford it, then you can’t afford it. Yes, the lender can a file deficiency judgment against you for the loss, but most homeowners will file bankruptcy which wipes out the judgment. In this case where you have equity in your personal residence, it would be in your best interest to work out something with the bank to avoid the judgment altogether. Make sure when you work out your agreement, you settle on a “satisfaction” of the loan, that way the worst they can do is 1099 you for the amount they lost.

Question: can a bank which i borrowed money from as an equity line on a property i owned out-right, foreclose on the property itself if the equity line payments are not being made?

Answer: – Absolutely… I’m sure if you review your paperwork it will tell you that they have the right to foreclose if payments are not made.

Question: If a non-primary residence in NY goes into foreclosure, what determines whether I receive a 1099-C or a deficiency judgment for the bank’s loss?

Answer: -A lot of times it just depends on the lender and the amount that’s deficient.

Question: Just got summons in Arizona for a piece of property that was foreclosed on and sold. The bank is suing us for the deficiency amount. Is there any way to fight this? We think we may have a defense because there was no public report for this property at time of sale.

Answer: – Yes, the bank does have the right to go after the homeowner for the deficient amount after the home has been through foreclosure.

Question:  I have property in WA, currently it is a rental property since I am in the military and am in NC presently. Being that I cannot come close to renting the house for what I pay in mortgage, I am facing letting the house go. Trying to find out all the ramifications of foreclosure.

Answer:  - Well, the bank will either 1099 you for the difference if they are not able to collect what is owed, or they will file a deficiency judgment against you for the amount they lost. Ideally, you are hoping for a 1099-c because in most cases you can counteract the 1099-c if it’s your primary residence or you are insolvent.