Foreclosure in Saint Paul>Question Details

Sheila, Home Seller in Saint Paul, MN

We may have to go through forclosure on our house. We are in St. Paul, MN. Will we have to pay the remaining amount if they can't sell it for?

Asked by Sheila, Saint Paul, MN Thu Jul 1, 2010

what we owe? We are worried about this as we can't afford to pay the remainder because of medical issues with us both.

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Steele V. Propp’s answer
While talking to an attorney is good general advice, the caveat is that many, if not most ,attorneys are not expert in Minnesota foreclosure law. So the key is that if you seek legal advice make sure this person is a real expert.

But at the same time understand that there is free counseling available. We are blessed with one of the best foreclosure resources in the country, the Minnesota Home Ownership Center. Trained counselors who will be happy to assist you.

http://www.hocmn.org/en/index.cfm

Tons of info on this website.

Minnesota is referred to as an "anti-deficiency" state. Simply put, it is more difficult here for banks to go after consumers who lose their homes through foreclosure. Not impossible, but difficult. Typically if the property is a primary residence and the loan being foreclosed upon was the one used to purchase the home, the bank can not go after you for any losses. Now this doesn't apply to second mortgages or lines of credit.

So whoever you talk will need all the particulars of your situation. From that they should be able to determine if the lender would have any recource against you.

Best wishes,

Steele
1 vote Thank Flag Link Fri Jul 2, 2010
You should consult an attorney and see if a short sale is possible. With a short sale, you sell the house for what you can and ask the bank to accept the offer and forgive the difference owed. In order to do this one of the qualifications is a hardship position which medical bills could qualify you. There are other conditions and you need to know if you are a recourse or non recourse state. In a non recourse state the bank can not come after you for the difference. Even if your state is a recourse state, the attorney can provide what is needed to make sure the bank does not come after you for the difference at a later date. Good luck
1 vote Thank Flag Link Thu Jul 1, 2010
Sheila, I can recommend an EXCELLENT agent who handles short sales all day long. They can help you assess your situation and give you some direction on who to consult to get the right answers. Most importantly, AN ATTORNEY! Not all attorneys know about short sales and how they work, so it's important to consult with a law firm that specializes in such communication with lenders.

Good luck and contact me here if you'd like that agent's info.
0 votes Thank Flag Link Fri Jul 2, 2010
Talk to your bank. Call a Realtor, and a mortgage person to see what they can help you with. Good luck.
0 votes Thank Flag Link Fri Jul 2, 2010
If you can no longer afford your payments you can do a couple of things, first thing is call your bank, ask for the home retention depoartment if you have the ability to make some payment but not the full amount ask them for a loan modification, they can lower the rate which lowers your payemnts.

If you have no ability to pay then ask if you can sell your house via a short sale, they will reduce the price you owe to allow it to be sold at todays market value, you shoudl seek to hire a listing agent who is well expereinced in short sales that can guide you.

If you do not have time for a short sale, if they have already set a foreclosure auction date ask about a deed in lieu of foreclosure. As far as what you may be responsible for paying after any of these, you can use teh free first meeting with a lawyer to get some direction and answers to your specific finances.

Please check out my blog

http://www.trulia.com/blog/scott_godzyk/2010/06/how_to_get_a…


TIPS ON GETTING A SHORT SALE TO WORK
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Fri Jul 2, 2010
Sheila, what kind of loan do you have?

Types of loans:
Conventional
FHA
VA

Thanks.
0 votes Thank Flag Link Thu Jul 1, 2010
I agree with the agent above. Consult an attorney. What I hear though, is that the banks are watching your credit scores, and purchases for common law of 7 years. When you got the mortgage, you also signed paperwork that allows the bank to come after you for up to 7 years, if you are looking financially healthy. This seems to apply to short sales and repos. Don't buy a new BMW or the bank may be coming after you for the difference.
0 votes Thank Flag Link Thu Jul 1, 2010
In order to best protect yourself, do consult with an attorney who specializes in real estate before making any decision--he/she will be your best source of advise as it relates to your situation--most professionals do offer a free consultation--or contact your local Legal Aid Society and ask for an attorney who does pro-bono work--free.
0 votes Thank Flag Link Thu Jul 1, 2010
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