Foreclosure

[evs3939]

What is the name of your state? CA
My cousin just got divorced and is about to lose his house through foreclosure. He has money in his savings account but he does not want to use that money to save his home as his interest rates are about to reset and he won't be able to afford the monthly payments anymore if he keeps the house. Can the bank go after his money on his savings account?

 

[Ozark_Sophist]

Will the bank be able to sell the house for more than the balance on the note, fees, and costs?

 

[LindaP777]

OS is correct. If the bank forecloses and the house is sold at the sheriff's sale for less than what is owed, your friend may be on the hook for the "deficit". Just because the house is foreclosed and sold, doesn't mean his obligation has ended, especially if he has money in his bank account.

FYI - this question would have been addressed better in the "foreclosure" area of real estate. However, no need to re-post, as it's been answered.

 

[HomeGuru]

What is the name of your state? CA
My cousin just got divorced and is about to lose his house through foreclosure. He has money in his savings account but he does not want to use that money to save his home as his interest rates are about to reset and he won't be able to afford the monthly payments anymore if he keeps the house. Can the bank go after his money on his savings account?

**A: the answer is yes.

 

[blackbelt]

hello

What they will most likely do is need to sell as a short sale on the home.The bank will ask for a hardship package and they will want to look at assetts.If you want to not have to show the savings account take the money out showing very little assetts.

They could pursue a defeciency after the foreclosure sale,you can also file bankruptcy and wipe out the defeciency.In Cali with values falling and rates going higher many are just walking away from there homes.

In a short sale they would give you a 1099 for the forgiven debt,you just would need to file with the irs the insolvency form saying that at the time your debts outwieghed your assetts therefore you don't owe any taxes.

This is not legal advice of any kind!

 

[LindaP777]

This is not legal advice of any kind!

Your right, it's not! It's telling them how to commit fraud! Please, do NOT post that type of information on this site. This is a site to help people with real, leagl information, not get them into further trouble!

 

[HomeGuru]

What they will most likely do is need to sell as a short sale on the home.The bank will ask for a hardship package and they will want to look at assetts.If you want to not have to show the savings account take the money out showing very little assetts.

They could pursue a defeciency after the foreclosure sale,you can also file bankruptcy and wipe out the defeciency.In Cali with values falling and rates going higher many are just walking away from there homes.

In a short sale they would give you a 1099 for the forgiven debt,you just would need to file with the irs the insolvency form saying that at the time your debts outwieghed your assetts therefore you don't owe any taxes.

This is not legal advice of any kind!

**A: here is some advice; take some spelling lessons please.