Foreclosure list
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One of the most important obligations for the mortgager is to pay the mortgage insurance to prevent his property to be listed on the foreclosure list, if the mortgage amount is 80% or more of the property against which the finance is done. This is due to the fact that the insurance formalities are enough to judge that the financer will get his money back in any way that may be foreclosure list or even from the monthly installments or PMI’s.
But even after taking such security measures the property might have to be sold via foreclosure list at a loss following the current constant drop in the property prices & the sharp fall in the major currency the United States Dollar or the USD, & there is no insurance to cover such a loss of the foreclosure list, it is the mortgager’s liability to repay the difference amount of loss due to the sale of property on the foreclosure list, the lender will have complete rights to cover any such losses out of the borrower’s other assets in case he or she has any, but this takeover by the lender may be effectively countered & help the client to save his other properties to be on the foreclosure list of banks. For this the client must first understand the complete terms & conditions, if in case he or she doesn’t want to see their properties in the hands of people interested in buying foreclosure list.
This takeover of the debtors other properties to be put up on the foreclosure list of the bank to be sold as foreclosure sale can be countered if the mortgage is a non recourse debt which is normally in the case of residential properties, the creditor may not take over the other assets of the debtor to recover the losses occurred via property listed on his foreclosure list. These liabilities towards the creditor may be restricted by state laws, in some states the non recourse loans are provided, all of this depends upon the properties of various states depending on their geographical discrimination & the demand & supply ratio of that particular state. Nonetheless non recourse debt is not provided on other loans such as refinanced loans & home equity line of credit.
But if in any case the creditor does not take up the deficiency from the debtor or if he can not because the mortgage is a non recourse and writes the loss off as bad debts the debtor may have to pay the taxes on the amount of loss occurred to the creditor on the foreclosure sale or foreclosure list to any real estate investor or any person involved in buying foreclosure list or that deals with the real estate business, & that loss occurred has not been paid by the debtor.
Also if you have taken more than on or several loans on your property & the property has been put up for a sale on the foreclosure list you as the debtor will still be liable to pay up all the other debts that you have taken on your property by any means, otherwise the judicial system will consider the matter of other creditors also.
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