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What happens when a home forcloses? What happens after?

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Anonymous

Asked by Anonymous at 12:17 AM on Apr. 8, 2011 in Money & Work

Answers (4)
  • you have a certain amount of time to get out...you won't be able to buy a house for a very long time and your credit is pretty much ruined for 10 years. The bank has 6 months to come after you for the difference on what you owe. I would highly recommend getting an attorney and trying to short sell. We did a short sale with an attorney and we were forgiven the difference. After a short sale you can buy a house in 2-3 years. It's much easier on your credit also. They are going to pass a law, if they haven't already, that if you can't prove financial hardship and are just walking away from your house just because...you can get in big trouble.
    calliesmommie

    Answer by calliesmommie at 12:20 AM on Apr. 8, 2011

  • calliesmommie said it all! I believe YOUR lender has to agree to a short sell. But as a homeowner living next to a home in foreclosure (and one who looked at foreclosures prior to buying) please consider your neighbors you are leaving. I mean we went in some where the persons had been so mad about leaving the home they all but destroyed the home. Luckily our neighbors weren't like that....just both lost their jobs and couldn't continue with payments and upkeep. I know at one time they both worked 4 part time jobs just to make the payments.
    brypmom

    Answer by brypmom at 12:25 AM on Apr. 8, 2011

  • That's a good question. I have no idea. Our house was foreclosed on in February and we still don't know what is going on. It was suppose to be foreclosed on in December so we moved out in November and then we got a letter saying it would be February. We have yet to hear from the bank and have no idea if our house sold or not. Our credit is shot but other than that, we have no idea.

    Anonymous

    Answer by Anonymous at 12:40 AM on Apr. 8, 2011

  • The poster is asking what happens AFTER a home forecloses, NOT before it forecloses.

    Basically this is what happens...The foreclosure will go onto your credit as a foreclosure. More than likely you will receive calls trying to collect on the debt as well as letters.

    Once the house is RE-SOLD, you should get a statement from your lender or whoever has the account at that point running after you for the difference of the house. Meaning this: let's say you owed $100,000 on the house when it foreclosed. The new person bought it for $90,000. They will more than likely go after you for the $10,000.

    This is what happened to me. I had to pay the difference but 2 yrs after I got the collection letters, they settled for $3,000 less. Oh btw-I gave it back to the bank so it was considered a voluntary foreclosure.

    I SPEAK FROM EXPERIENCE HERE, OR I WOULDN'T HAVE ANSWERED THE QUESTION.
    AnasMommy7

    Answer by AnasMommy7 at 8:47 AM on Apr. 8, 2011

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