2 parter question about mortage and credit

Glad to meet you Still! Someone will be along shortly to help you out who has experience with this.

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Hi still-

If it sells for the mortgage amount or greater, you will owe $0. If it sells for less, most mortgage companies will charge off the balance.

It will show as a forclosure on your credit report under Status. :(

Might be a stupid question...if it sells greater, does Still get the difference?

no

Well not sure if this is the same or not but my mom lost a car years ago and it actually sold for more than what she owed and she indeed DID get the extra! I don't know if foreclosure is different and why it would be... If they keep the money where does it go?
Ang

It will sell and if their is any balance owing the creditor will file suit for a deficiency judgment with the court. The credit report will show a foreclosure on your report.

Ang-That is interesting about a car repo...the mortgage company is definitely not out to act as a selling service for the defaulted homeowner.

I worked in mortgage servicing for many years and once the mortgage company files default and forecloses, its belongs to the bank now and the homeowner has no interest or rights to the property unless there is a redemption period and the homeowner can try to pay the default to get the home back.


The mortgage company will record any overages as income because after all, the house is theirs.

As cajun said, the mortgage company can sue for the defecit....

Yea i figured that it was different since it's a mortage and once forclosed it becomes the banks property i guess! Just wanted to share the car thingy....
Have a good Monday volley,
Ang

Also i'm guessing with all the foreclosures on the market not much chance that this house will make money huh?
Don't the mortage companies also auction these homes off??
I find this very interesting!
Ang

Most homes will go to auction, be bought by more than likely a realtor or investor then go back on the market, be rented or just sit. OR it can become an REO (Real Estate Owned) property in which the bank will retain the property and sell it themselves.

Add on question to this????

If a mortgage was about to go into foreclosure....
Letter for default recieved and forebearance started...

I sold house and paid off total mortgage prior to the foreclosure proceedinggs from an attorney or the public listing in the paper.....

Should the bank be able to list " foreclosure or foreclosure started in the comments on the CR???

Yes they are still allowed to list this on report.I would dispute the account as much as possible in any field of trade line. If they do not answer the dispute it can get deleted like this.

Please clarify " in any field of trade line"

Thanks Cajun for the extra help!!!