Can a mortage company Go after me for for what they loose on short sale or forclosure?? I?
Hi,
My house is going under foreclosure and there are two loans. The second loan put a judgment on me. I am trying to sell the house under short sale. Will they come after me for whatever money they loose? If so, to what extent? If I file for bankruptcy will that take care of this mess so that I can begin to rebuild my life? I don’t have anything of value and currently unemployed and my family and I are actually living with my parents in their apartment now. I am a first time buyer and have not refinanced. The house was bought on November 2007. I also stopped paying about five months ago when all this began. Will this never end and will they come after me until I die?
WHAT CAN I DO?
Answers:
They can come after you for what you owe. A foreclosure only means that they take the house to try to recoup loses but it does not relieve you from the full debt. The worse news is that they can also charge you for the costs of the sale, any unpaid taxes, interest due, legal fees, etc.
A bankruptcy court may allow your bankruptcy but they also may tell you that you have to restructure your debt, that is, pay it off more slowly perhaps over a longer term. If you're able to work but just are not, the court won't look favourably on that.
Also keep in mind that a bankruptcy in the US stays on your credit record for 7 years and will severely limit your abaility to get any credit whatsoever...avoid it if you can...good luck...
They will probably do what is called a "charge off" they place the amount deficient on your credit report. It stays there for an unknown amount of years or until its paid off.
Not only do they come after you, the feds will want income tax on the difference too.
They consider it unearned income.
Avoid this any way you can and good luck!
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