Re: divorce foreclosure

Posted by njdave on June 22, 2005 at 07:00:23:

In Reply to: divorce foreclosure posted by Brian on June 21, 2005 at 15:48:24:

"My question(s) are would she be held liable for any monetary amount not obtained in the sale of the home, and would she have a foreclosure on her credit report?"

If the home were sold either 'preforeclosure' or at a forced, public sale at an amount greater than the mortgage(s) debt... then there would be no deficit liability. History will reflect that foreclosure had been initiated. If the property were sold preforeclosure, the 'foreclosure' proceedings record would remain on her credit, but without the final forced, public (Sheriff's or Trustee's) sale.

If the sale failed to result in enought to pay off the mortgages, the lender may either write off the debt and issue a 1099 for the amount of forgiven debt creating a possible income tax liability.... of seek a deficiency judgment.

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Comments:
: "My question(s) are would she be held liable for any monetary amount not obtained in the sale of the home, and would she have a foreclosure on her credit report?"

: If the home were sold either 'preforeclosure' or at a forced, public sale at an amount greater than the mortgage(s) debt... then there would be no deficit liability.  History will reflect that foreclosure had been initiated.  If the property were sold preforeclosure, the 'foreclosure' proceedings record would remain on her credit, but without the final forced, public (Sheriff's or Trustee's) sale.

: If the sale failed to result in enought to pay off the mortgages, the lender may either write off the debt and issue a 1099 for the amount of forgiven debt creating a possible income tax liability.... of seek a deficiency judgment.


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