Foreclosure in Nashua>Question Details

Ryan, Other/Just Looking in Nashua, NH

my house is being foreclosed i responsible for the balance if the auction sale price does not cover the?

Asked by Ryan, Nashua, NH Sun Jul 26, 2009

loan amount

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Scott Godzyk’s answer
Good Afternoon Ryan,

In most cases the bank will look to recover the difference between the total you owe and what they get at auction less the cost of the foreclosure auction> if they deem you have no ability to pay or do not own other property, they may opt to write it off, only your lender can give you that information. Now depending on how far from foreclosure you are, there are options you do have. please feel free to email me direct at i can go over a couple of options, they mainly depend on if they have set an auction date and how far along the foreclosure is. There is always a short sale, loan modification and forebearance. i wish you luck working things out either way.
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0 votes Thank Flag Link Mon Jul 27, 2009
Only your lender can explain and review all those details with you, or confer with a real estate attorney. If lender states no I recommend have in writing never know when "someone comes knocking at your door"

Sorry to hear about all this.

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0 votes Thank Flag Link Sun Jul 26, 2009
Hi Ryan,

You ask, "my house is being foreclosed i responsible for the balance if the auction sale price does not cover the loan amount?"

The right answer is, "yes and no..."

You are in fact responsible for the money you borrowed and apparently are not able to repay. And if the bank or mortgage company can, they will ask you to sign documents to remain responsible until their loan is satisfied. (I suggest that you engage a lawyer to review any paperwork they ask you to sign.)

But apparently you have reasons why you are not making the payments and so they are foreclosing on your home, meaning they are taking the title (true ownership) back from you for non-payment of the obligation. Once they have taken your title and ask you to remove your personal property and your residence to some other locale, you are probably no longer responsible for the loan. What comes with this however is that they will review your finances to see if you may have assets that they can attach--to get the money they believe you sill owe them.

So if they found that you have a yacht or some other asset that they can put a lien on, of if they find that your spouse is a doctor or lawyer or a movie star or professional athlete and earning a good salary, yet you have not made your payments, they can chase you for fraud.

In fact, if you are only telling them the truth, and you can't make the payments, then the foreclosure and auction will probably free you from the title to your house and your responsibility for the loan. Also you will forfiet your acceptable credit standing for some years.

If you want to stay in the house and think that with a mortgage modification you could afford to actually make the payments, talk to a lawyer who specializes in bankruptcy. A simple bankruptcy will delay the auction for up to 6 months, and a loan modification may lower the payments by changing the rate, or the balance owed--if the property has lost considerable value--or the length of the repayment term. Banks are not usually willing to be generous in these matters, but often will give you some additional time.

Dane Hahn
Broker, NH Real Estate
0 votes Thank Flag Link Sun Jul 26, 2009
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