Topic: Just one of lifes situations......

[boatsdickson]

Kinda long story but Ive got questions. Asking them here usually gives me better and quicker answers than my own searches.

Last year I was one of the many who was laid off from the job and subsequently lost my house to foreclosure. Now that Ive got a different house with affordable payments, thank you for family members, I must begin the rebuilding of my credit and get ready for the mortgage game someday.

My questions:

Once a house is repossessed and sold on the market, will I still be responsible for the difference of the sale price vs. the original note price or will the private mortgage insurance cover that?

I had two mortgages on this house. An 80/20 setup. The sale price wont even cover the 80% portion. So does that mean I will be sued for the remainder of the 80% and also the 20%? Or once again will the pmi cover it?

How long will a repossession affect my ability to buy a different house and carry my own credit in say 3 years?

Is bankruptcy the typical answer in most repossession cases?

..................................

I have more questions Im sure, but digging up tough subjects make thinking clear a little tough too.

Also putting this on a public forum is a little unnerving but Ive talked with a few of you in the past about this and there really is alot of knowledge here.

Thanx........boats 

[billybobobrain]

The bank will sue for the remaining balance. But I would wait and see what happens before filing for bankruptsy. When you do file pay an attorny!

[Duke McDukiedook]

Depends on your mortgage contract, you might want to pull it out and see what it says on foreclosure and what you are liable for if you do not fulfill your end of the bargain.

Like Billy says the bank may sue you for damages for severing the mortgage contract. You will want to have a lawyer to help you in this matter. Bankruptcy may well be in your future, talk to an attorney and see what the best options are. You may not have to file and you may be able to keep this out of court entirely- you might be able to cut a deal at reduced terms with the bank that held your mortgage. You will want to seek an attorney that specializes in these types of matters, don't just get a general family lawyer.