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5:39 pm
October 30, 2010
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EN
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|  Bronze Apple | posts 942 | |
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Sourdough said:
If your name is on the house loan, and they forclosed……….they could get a deficiency judgment, and take the paid for free and clear land.
It's possible but not likely if they have equity in the house. Plus if I get this right it's obvious "she" owns this house, not her husband. If it's not community property I believe such judgements are impossible for the bank to get from the court.
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"Any intelligent fool can make things bigger, more complex… It takes a touch of genius to move in the opposite direction." Albert Einstien
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5:55 pm
October 30, 2010
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Crab Apple
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| Bronze Apple | posts 860 | |
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OHHH AHHHH look En is GOLDEN!!
Yeah I own my home and have family owned land around me but that still leaves taxes GRRRR. Currently I carry no debt but some of that family land is going up for sale soon and I will have to borrow before I let it go on the market, the property we built our cabin on is in my wifes name and we didn't borrow anything to build the cabin…. I guess if I borrow for the acerage coming up for sale in my name the cabin wouldn't be at risk if I fell behind on a mortgauge on land.
What would I do if I lost my home? Well things would be pretty dire at that point….. I have a 36 foot RV (old but in good shape) and 2 huge army tents and camping and backpacking gear mmmhmmm pretty dire indeedy.
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6:01 pm
October 30, 2010
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Justin Case
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| Bronze Apple | posts 647 | |
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Deficiency judgements depend on state law. Part of prepping is knowing what your alternatives are just in case the unthinkable (e.g., foreclosure) happens.
Can they come after you?
In the case of foreclosure, lenders can pursue deficiencies in more than 30 states, including Florida, New York and Texas, according to the U.S. Foreclosure Network, an organization of mortgage law firms.
Some states, such as California, are "non-recourse" and don't allow deficiency judgments. But, even there, if the original loan was refinanced, some or all of it may be subject to claims.
You lost your house – but you still have to pay
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6:22 pm
October 30, 2010
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Justin Case
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| Bronze Apple | posts 647 | |
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EN said:
The way things are heading on the border you might want to think about selling it and either paying off your home or getting another place further north. Of course this ain't the greatest time to be selling, but it might be the only time. Historically the Southern border has been just a tad out of control during economic bad times. You seem to have thought this through pretty damn well, so think of my suggestions as another way of looking at it.
Location may be a situation where the devil you know is better than the devil you don't know.
For the last four decades, for example, I've lived within 25 miles of major earthquake faults. They could go at any time and if it's big enough, the earthquake will completely wipe me out. Yet I feel comfortable with this arrangement because I've lived with it for so long. Besides, what calamity do I want to choose for where I would move: tornados? hurricanes? floods? killer snowstorms? killer heat waves? 
The same consideration applies to country versus city living. I grew up in the country and had to make a major adjustment when I first moved to the city. But I've been in the city for so long now that I would have to make another major adjustment to move back to the country. It's a question of making tradeoffs among the alternatives.
I know I would be willing to change if the situation gets dire enough. By then, however, I will have lost a lot and will have wished I had made the change earlier. At the same time, the situation may not get as dire as the worst case scenario. Life is a gamble we play with the choices we make among the alternatives that are available to us.
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6:29 pm
October 30, 2010
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EN
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| Bronze Apple | posts 942 | |
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The deficiency judgement conundrum has actually happened in Brooklyn in the 60s and 70s. Government created a mess with "Rent Controlled" apartments. Since costs outweighed rents many neighborhoods started to deteriorate and owners were suddenly faced with being upside down in neighborhoods that were steadily becoming unlivable. The result was arson. In one year in there were over 700 suspicious fires in NYC and most of them happened in rent controlled areas. If you can't sell but the banks (which were losing money on real estate like everyone else) won't let you out of it, guess what happens? The insurance covers the cost of the mortgage and nothing else but at least you get to walk away. At one point there was one 500 acre parcel in Brooklyn that was burned to the ground. That's a big chunk of inner city real estate and it was the biggest but one of many. No one would build because the city classified them as "rent controlled". I believe Giuliani finally got that mess cleared up but most of these areas still exist.
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"Any intelligent fool can make things bigger, more complex… It takes a touch of genius to move in the opposite direction." Albert Einstien
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6:47 pm
October 30, 2010
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Jarhead
| | Arkansas | |
|  Diamond Apple | posts 2326 | |
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Post edited 6:48 pm – October 30, 2010 by Jarhead
In many cases the bank instead of pursuing a deficiency judgement chooses not to get a deficiency judgment and instead report the loan deficiency amount on IRS Form 1099. The result to the homeowner is a "phantom income" requires him to pay income taxes on this amount. In this situation the final cost of the guarantor’s foreclosure is the amount of income taxes he pays the IRS instead of the entire deficiency judgment. This is a substantial savings to the homeowner and the lender also benefits because there is no collection on his books that is counted as a liability.
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" When a well packaged web of lies has been sold gradually to the masses over generations, the truth will seem utterly preposterous and it's speaker a raving lunatic." Dresden James
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9:46 pm
October 30, 2010
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jadalina
| | Texas | |
|  Core Member | posts 142 | |
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Post edited 10:03 pm – October 30, 2010 by jadalina
Sourdough said:
If your name is on the house loan, and they forclosed……….they could get a deficiency judgment, and take the paid for free and clear land.
Doubtful. The free and clear land was in my name 10 years prior to even meeting my husband, and remains in my name. The house we live in is in his name only.
@EN, it's about 8.5 hours from the Mexican border, as the crow flies, and approximately 4 hours from the proposed Trans Texas Corridor. Not an ideal location, but I'm ok with it. Besides, in this economy, no one is buying anyway.
@Justin, it's definately a devil I'm familiar with. Amusingly enough, the devil thinks that when the US economy collapses, US citizens will be streaming across the border into Mexico looking for work, and the devil is gibbering with glee at the idea of being able to arrest and deport us. Dream on devil, lol!
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10:22 pm
October 30, 2010
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Sourdough
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| Bronze Apple | posts 730 | |
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jadalina said:
Sourdough said:
If your name is on the house loan, and they forclosed……….they could get a deficiency judgment, and take the paid for free and clear land.
Doubtful. The free and clear land was in my name 10 years prior to even meeting my husband, and remains in my name. The house we live in is in his name only.
@EN, it's about 8.5 hours from the Mexican border, as the crow flies, and approximately 4 hours from the proposed Trans Texas Corridor. Not an ideal location, but I'm OK with it. Besides, in this economy, no one is buying anyway.
@Justin, it's definitely a devil I'm familiar with. Amusingly enough, the devil thinks that when the US economy collapses, US citizens will be streaming across the border into Mexico looking for work, and the devil is gibbering with glee at the idea of being able to arrest and deport us. Dream on devil, lol!
Did you sign on the house loan or on the house refinance…..if so they "Could" sell your land. I know I lost $962,000.00 of free and clear full paid off properties to FDIC. This was in the great Real Estate Depression of the 1980's in Alaska , Texas, OK. and all this because they forclosed on a $92,000 loan, and sold the property for $32,600.–
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LOOK: Start to get wrapped around the idea that it was over in the Fall of 2008. This is just the dying quivers. Stop waiting for "IT" to happen, "IT" already happened.
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9:31 am
October 31, 2010
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jadalina
| | Texas | |
| Core Member | posts 142 | |
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Sourdough said:
Did you sign on the house loan or on the house refinance…..if so they "Could" sell your land. I know I lost $962,000.00 of free and clear full paid off properties to FDIC. This was in the great Real Estate Depression of the 1980's in Alaska , Texas, OK. and all this because they forclosed on a $92,000 loan, and sold the property for $32,600.–
Ew that sucks man.
Nope, he purchased it all on his own while we were engaged. My name is nowhere on any of the paperwork. The will states I get it if he dies, but that's the only mention of my name on it. I told him when he got it, hey it's your money, it's your house.
I'm not TOO worried about us losing it. It's just one of those "What Ifs" that keeps me from wanting to sell my old place and makes me want to get us a few more payments ahead just in case.
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