Foreclosure on a Home!?

[CzaLeo]

Ok lets say I get a notice of foreclosure and I can't afford to work out a monetary agreement, I just loose the house right? Or does the bank try to collect punitive (I am just guessing) damages or something like that business related,?? Or they just take my home and that’s it? I don’t want to have to pay the mortgage company some type of compensation in the long run. I lost my job back in February and have been living off my savings until now, so I think I might have to go this route unless I get a job within the next few months making what I was making enough to pay my mortgage every month. I know you guys are not legal advisors but someone might have gone through this or knows someone who has and get give me an opinion. Thanks

[leysarob]

The loan company will forclose and sell the house -- if the purchase price of the home does not pay off your mortgage you will owe the difference.

[shojo]

If you have any equity in the house, you could try taking out an equity loan. You may not be approved since you have no job though. You could also try refinancing the home. If it does go to foreclosure, they sell it, usually on the courthouse steps, and if it sells for less than you owe (which it most likely will) you will owe the balance. If you don't pay the balance in the short amount of time they'll give you to pay it, they can sue you. It's a bad situation to be in, and I don't envy you. Just try to keep your chin up!

[outtahere2day]

What are your prospects for employment? First, you need to go to your lender and ask them to work out something to help get you buy, Often they will allow you to miss a few payments and add the missed ones to the back of the mortgage. Then you should decide if you will be able to pay the payments in the near future. If not, you can operate a short sale, with no income, you could walk away without forclosure on your record and not owing money. Just talk to a realtor in your area. If it is San Diego, contact me

[mirrorinthesky]

I would try to sell your home if you have time. This will make sure that your credit stays intact, and maybe you could get a little cash in your pocket as well. If you are in a severe time crunch you could try to find someone who will buy your house for cash (either a business that does this or just let some local Realtors know about your situation). They would probably give you less than market value but enough to cover your loan and give you a small amount of money to boot. This is a far better alternative than foreclosure.As far as punitive damages go, there shouldn't be any that the bank could come after you for. The bank took a chance when they lent you money. This is the reason they rely so heavily on your credit score. The banks won't regularly lend more than the house is worth so in the case they have to take possession of it they can sell it and recoup most, if not all, of their cost. Banks do not want to have to do this. You should also check in with them and tell them of your situation and see if they can work with you.