What assets are at risk in a home foreclosure?

Question

What assets are at risk in a home foreclosure?

Answer 1

[I am not a lawyer- legal advice should be obtained from an attorney licensed to practice in your state and EXPERIENCED in your particular situation.]

At the moment, the lender has nothing but a lien against your property.

IF they decide to collect on any shortfall, they would need to obtain a "deficiency judgment." To do this, they would have to file suit and win in order to place a lien on any other property, or garnish wages or bank accounts.

This is not common practice, however.

In most cases, the lenders are filing a 1099 for the amount of the loss.

[Sometimes, they don't even bothering doing THAT.]

If you've gotten one, then you're off the hook, because they can't do both.

However, you may be liable for taxes.

Go here and take a look:

http://www.irs.gov/newsroom/article/0,,i...

Most people who are losing their homes to foreclosure because they're essentially insolvent.

With the right tax advisor, you can probably avoid the tax on that "income."

If they don't 1099 you, then they do have the right to pursue you for a deficiency jugment.

If that's a concern for you and if you expect your financial situation to get dramatically better, then it would be wise to see an attorney, and check to see what the statute of limitations is in your state for this kind of debt.

If you're in a non-recourse state, like CA, then you may not be liable for a deficiency, if you meet certain qualifications.

If you haven't lost the home yet, and you'd like to try to figure out a way to keep it, you might want to go to my website:

http://foreclosureresolutioncenter.com/

Best of luck.

Answer 2

once the foreclosure is completed, and IF there is a deficiency balance, then the lender will have a lien against any other real property you own, and can garnish your bank account.

Answer 3

the home first---Then if there is a balance once sold and you file a chapter 7 then many could be since you must list all as well as debts