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Foreclosure question

If your house gets foreclosed, are you responsible for the balance of the loan after they sell the house? Please no lectures about being responsible, I bought what I could afford but with DH being laif off for over a year and me possibly being laid off in a month I just can't do it.

Answer Question
 
Anonymous

Asked by Anonymous at 10:28 PM on Dec. 28, 2009 in Home & Garden

Answers (3)
  • it is state dependent in NY the ans is no... it goes on your credit but that is it

    and if they sell the house for more then what you owe --you the previous owner gets the difference-- I bought my house 8 years ago as a foreclosure-- then someone else bid on the house and thanks to a bidding war between me and another family the previous owners got $15,800-- 2 years after their home was foreclosed by the bank ...which actually made me feel good
    MELRN

    Answer by MELRN at 10:42 PM on Dec. 28, 2009

  • They foreclosed on my house and I wasn't held responsible for it. The balance was paid off when they resold the house.
    admckenzie

    Answer by admckenzie at 3:22 PM on Dec. 29, 2009

  • You may get a 1099 for the amount that was forgiven on the loan. So if they sold the house for $100,000 less than you owed, you would have to claim that as income and PAY TAXES on the amount you were forgiven for. Not all banks are doing that. My SIL held off foreclosure for 3 years by filing bankrupcy. Maybe that can help you for now. Banks dont want the homes.
    brancoj

    Answer by brancoj at 1:07 AM on Dec. 30, 2009

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