again my disclaimer I am not an attorney ,i am a realestate broker any advice I give is not nor is it intended to be legal advice and is custom to the state of wisconsin.
first you can't really protect your credit in this type of occurance.
but if you had been makeing the 20% contribution to the mortgage company even though you couldn't make the full payment they would have a hard time getting the judge to forclose. thought being atleast you were trying. and due to circumstances were just not able to make the full payment.
**A: Correction: the writer must read the mortgage and the note. Foreclosure action is based on a breach of the terms and conditions in the mortgage. The lender does not have to accept partial payments and in a judicial foreclosure, judges commonly agree to hear the foreclosure complaint. All the lender has to prove is that there is a mortgage secured to the real property and that the mortgagor is in arrears. Based on the evidence, the judge has to agree to move to trial or summary judgement. If it is a non-judicial foreclosure, it is worse as the lender could file a notice in the paper and then take possession of the property.
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secondly, you due have the (right of first recision). which means that if at anytime in the next ( generally) 1 year you can pay the full amount you get the home back. now that can be done by getting a loan with a different lender or any other means within the law
**A: I do not know if this is true since the laws vary with each State. And the writer's State has not been posted.
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also be aware since your name is on the title/deed that if you owe (example) say like 100,000.00 on the home yet and it sells for only say 80,000.00 you and the other person will still be liable for that 20,000.00 that hasn't been recovered in the sale.
**A: that's known as a deficiency and not only includes the principal mortgage balance but accrued interest, foreclosure Trustee fees, court closts, legal fees etc.
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the smartest thing would have been for you to have put it up for sale right away so that you could of not only protected your credit but, could of walked away hopefully without oweing money.