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home foreclosure question

Lets just say that a house was mortgaged to the hilt in 1st and 2nd mortgages that were used to buy frivolous items. The large luxury items that have a title or a deed are held in the name of an LLC corporation. When the home is foreclosed upon ware all these items protected by the LLC? If the value of the house is less than half of what it was mortgaged are the owners responsible for any of the money that is not satisfied when the home is foreclosed upon and sold at auction?

Answer Question

Asked by Anonymous at 4:41 PM on Dec. 2, 2010 in Money & Work

Answers (5)
  • I would think yes they cn take the other stuff too

    Answer by leksismommy at 4:47 PM on Dec. 2, 2010

  • Why would the mortgage company be able to take other items? They cannot, their only collateral is the house and land. That is why financing second mortgages is so risky. And yes, the owners are responsible for the balance. Many people file bankrupcty at that point to rid themselves of that debt.

    Answer by Candi1024 at 4:49 PM on Dec. 2, 2010

  • Anything attached to the house - lighting fixtures, dishwashers, water heaters - is considered part of the home. Anything IN the house is considered personal property. If it is over a certain amount (usually around $500 resale, but varies state to state), it can be removed from the house and stored for a period of 30 days for the owner to claim.

    Answer by JulieJacobKyle at 5:01 PM on Dec. 2, 2010

  • What kind of luxury items??

    Answer by leksismommy at 5:33 PM on Dec. 2, 2010

  • If credit card companies can show that you used the card to buy say a car or something- they can in most states take the car. I imagine it's the same thing with a 2nd mortgage... especially if you spent the money knowing you wouldn't be able to pay it back.

    At the same time with so many foreclosures going on the bank might not even have time to look at what you spent it on. That and if you spent it on vacations- or things that don't have any value now, then it's probably not worth it for them to come after you.

    Sorry you are going through this.

    Answer by Erica_Smerica at 1:41 PM on Dec. 3, 2010

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