Consumption and Real Estate
after foreclosing on my house in new jersey,can they come after my house in florida.?
Question : after foreclosing on my house in new jersey,can they come after my house in florida.?
I can no longer afford my home in new jersey and it is for sale. i have priced the house at a reduced number. i am still current and have a new mortgage and job in florida. i am moving there next month. I cant afford both mortgages and if the house does not sell quickly, i will be unable to pay and thus will become delinquent.What can i do and can they come after my new house in florida?
new jersey mortgage
Best answer:
Answer by Gregg
No.
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#3 written by livigninchrist! 1 year ago
Not usually. The foreclosed house was the collateral for the loan. If you did what is called a “short sale” the bank can for up to 7years come after you and demand the balance that they are left with. For that reason most of the time I do not suggest my clients participate in a short sale on their property. I pray that you do sell quickly. You sound like you are a fairly responsible person and you don’t really want to leave the bank high and dry. Good Luck
I have done a little checking. It turns out that in some states the bank has the right to file a judgment against you. At least that is what one source has told me. Again my prayer is that you do sell quickly and do not have to face this issue one way or the other.
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Before choosing to go with the foreclosure, you should look into a few other options first. Refinancing is the option that most homeowners attempt first, but credit/income and tighter lending have precluded most homeowners from qualifying for a loan right now.
Either way, you should list the house on the market just on the off-chance someone wants to purchase it before the foreclosure goes through. You can also try to work with the lender for a short sale, where you’d sell the property for less than what you owe on it. At least it will pay off the loan and save your credit a bit.
If that doesn’t work, ask the lender about giving a deed in lieu of foreclosure. That works as just giving the property back to the bank, and they can’t go after anything else. They accept the deed instead of foreclosing or paying the loan, so there’s nothing else for them to go after. This is only slightly better than a foreclosure, but anything you can do to preserve your credit will help at this point.
It will depend on how the bank pursues the foreclosure if they can sue you for another judgment and go after any other assets. With just the foreclosure, though, they are not entitled to anything else. You pledged the house as collateral for the loan — not your car, 401(k), or prize racehorse. So all that they can take as payment for the loan is the house.
Look up California’s state foreclosure laws and consult your loan documents to determine what kind of foreclosure the bank can proceed with (Judicial or Non-Judicial). That will tell you if they can sue you afterwards and try to go after any other assets.
Banks rarely sue for deficiency judgments, though, since they know that foreclosure victims don’t have a lot of extra cash or even the ability to borrow any money. It costs the lender extra time to sue you and there’s no guarantee they’d be able to collect on the judgment, so most don’t bother with the judgment at all.
Hope that helps.
ForeclosureFish
http://www.foreclosurefish.com/…
Source(s):
Short sales: http://www.foreclosurefish.com/blog/inde…
Deed in lieu of foreclosure: http://www.foreclosurefish.com/deedinlie…
California foreclosure law: http://www.foreclosurefish.com/ca.htm…
Deficiency judgments: http://www.foreclosurefish.com/blog/inde