Inheritance and foreclosure: I'm facing foreclosure with the thousands of other people in his country, due to a death. I will inherite another paid for home soon. Can anyone take the new house from me because I had a foreclosure on the one before?
by 
Anonymous
ANSWERS: 2
-
This depends on the homestead exemption in your state. Each state exempts certain property from collections. Some states exempt a certain value, while others exempt a certain property size. If the bank foreclosed on your other property and lost money on the deal, you are still liable for that debt. The bank can go after other assets to collect that remaining debt. The bank can only force you to sell the new property if it will completely satisfy the debt and your states homestead exemption does not prevent it. In most states, the homestead exemption prevents a sale, but the bank can put a lien on the new property. Thus, if you ever borrow against the home or sell it, the bank will get paid. In most states the homestead exemption prevents them from selling
-
Depends on if the mortgage type was a "deed of trust" or a "mortgage". Most deed of trust statutes in most states do not allow for any collection of any deficiency balance. And even on those very rare occasions where they are allowed to collect a deficiency balance on a deed of trust, in order to attach any of your assets, the creditor must file a lawsuit then, once that's obtained and recorded, they have to file some other paperwork to attach the asset they're trying to attach. With mortgages, those are foreclosed judicially from the beginning which means lawsuit. Lawsuits have "money judgment" language in them sometimes. The creditor has to tell the attorney to include that in the beginning of the suit. Then, later, once they have the judgement against the person, they still have to file paperwork to attach the person's other assets. There are also some states in the US where such things can't be done. Every state has different statutes.
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC