Foreclosure in Elyria>Question Details

Needsomespace, Other/Just Looking in 44035

If your home Sheriff Sales for less than you owe, do you have to pay the bank/mortgage company the difference?

Asked by Needsomespace, 44035 Wed Dec 9, 2009

Ex: You bought a house for $100,000 and still owe $90,000 on the mortgage. The house forecloses and then goes for Sheriff Sale and sells for $70,000 . Does that mean you would still be liable and owe the bank/mortgage company the $20,000 not recouped on that outstanding mortgage? Is that correct how I understand that?

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Your best bet is to call a professional and do everything you can to avoid the Sheriff's sale altogether. Contact a professional Real Estate Consultant to see what your options are. Good consultants have access to attorney's and accountants that also are there to help.
Web Reference: http://www.druryrealty.com
0 votes Thank Flag Link Fri Dec 11, 2009
To answer your question about being foreclosed on, Yes in normal conditions you would have what they call a default judgment for the amount owed and any legal fees the foreclosure incurred. You would also receive a 1099 from the IRS for the same amount, meaning you would have to pay taxes on that money as if it were income. But I do have some good news: first the government has put a hold on the 1099's for the default amount, secondly most banks are not pursuing the default judgments unless they investigate and find that someone would have something to attach, money in the bank, another house, etc. Do you want to get back into a home, we can help. Good Luck Bob
0 votes Thank Flag Link Fri Dec 11, 2009
Thanks for the question.

The answer all depends on the type of loan, who holds the loan and if you or your agent was able to negotiate with the loss mitigation department. In some successful short sales it is possible to convince the lender to give up the right to pursuit a deficiency judgement against the homeowner. With my short sale clients I work with the lender to try to have the deficency removed. If you have any other questions don't hesitate to call, email or go direct to my web site assistwithshortsale.com or avoidforeclosure-loraincounty.com

Thanks again and have a nice holiday.
0 votes Thank Flag Link Wed Dec 9, 2009
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