5 Thoughts on i had a forclosure the mortgage com. say i owe the balance that they did not get in the sell?
  1. Reply
    Blue Haired Old Lady
    June 9, 2012 at 9:33 am

    Yes, that is legal. You DO owe the money – did you read the mortgage papers you signed? They said you would repay what you borrowed.

    No, you probably will not qualify for another mortgage if the last one is still unsatisfied.

  2. Reply
    Arbor Mortgage
    June 9, 2012 at 9:55 am

    Yes, they are able to collect the balance of the mortgage from you. You will not be able to be financed for a new home until that debt is satisfied. There is a minimum of a 3 year wait after foreclosure to become financed for a new home (FHA), so there is time to address it before you can qualify for a new purchase. If the debt is too much for you to possibly repay, it may be a good idea to consult with a bankruptcy attorney.

  3. Reply
    June 9, 2012 at 10:22 am

    Is it legal for them to require you to fill YOUR legal obligation?
    You as the mortgagor agreed to repay the loan from the mortgagee (the lender).

    Since they had to spend time and money foreclosing on you and did not recoup the full amount of the loan, you are still obligated to repay the balance.

    You will not be able to qualify for another mortgage for at least three years.

  4. Reply
    June 9, 2012 at 11:09 am

    It’s legal. They gave you cash and they need to recover that money somehow. I do not think any other banks will be all gung ho to be giving you funds, you have proven without a doubt that you have no intention of repaying the money.

  5. Reply
    June 9, 2012 at 11:12 am

    Normally you do not owe the mortgage company. The mortgage company has decided that they had a loss in this foreclosure transaction. If the mortgage company had a loss then someone had to have had a gain. The person that is deemed to have had this gain is you.

    The mortgage company will then issue you a 1099 indicating what this gain is. Since this is a gain to you, you are now required to pay taxes on this gain.

    Yes you may purchase another house since this is a tax problem as oppose to a mortgage one. The mortgage company is not gonna set up a payment schedule for you to pay this gain off. They are finished with you once they have issued the 1099 to you.

    In some states the lender might attempt to get a court ordered judgment deficiency against you. I doubt this is the case as this is too time consuming for the mortgage lender and the courts agenda is full.

    You should look at your loan docs you signed. These docs will tell if you are encountering a deficiency judgment. Most loan docs will indicate the lender will only go after the collateral listed in the loan docs.

    For tax and legal matters, you should always consult your tax consultant and attorney.

    Most lenders will allow you to apply for and approve a new mortgage loan when 3 or m ore years have elapsed since your foreclosure. Also you must have re-established good credit and have good credit scores. Some will allow the application and approval at the end of 2 years but 3 is the norm. In some instances you will be required to write a letter of explanation as to why you encountered the foreclosure. You loan officer will be able to assist with this letter.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”

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