- What can I do if I cannot pay my mortgage?
- What happens after my house is sold at a sheriff's sale?
- Is it true that once a bank forecloses on my house, that I can't be sued for the balance of my mortgage?
- What should I consider when buy/selling a home through a contract for deed?
- How can I decide whether to strategically default on my mortgage?
- Can I postpone a sale?
- What is a short sale?
- Foreclosure versus Bankruptcy
- What are the effects of foreclosure?
- What is a Deficiency judgment?
- Do I need an attorney for a short sale?
- What can I do if I cannot pay my mortgage?
- Homeowners in default typically have a few options: You can talk to your bank and negotiate a modification of your home loan. You may also try to negotiate a short sale with the bank to prevent foreclosure. Minnesota law also allows defaulting homeowners to postpone a foreclosure sale in certain situations.
- What happens after my house is sold at a sheriff's sale?
- After your house is sold at a sheriff's sale, a redemption period begins during which you can redeem the house-that is, buy it back from the person who bought it at the foreclosure sale- if you are able to pay for full value of the house. Depending on the type of foreclosure you experienced, the redemption period lasts for either 6 or 12 months.
- Is it true that once a bank forecloses on my house, that I can't be sued for the balance of my mortgage?
- Under Minnesota law, you are only liable for the balance of your mortgage, which is known as a deficiency judgment, if your bank forecloses by action. A foreclosure by action occurs when a bank forecloses through the court system, rather than through foreclosure by advertisement. Most foreclosures in Minnesota are foreclosures by advertisement.
- What should I consider when buy/selling a home through a contract for deed?
- If you purchase a home through a contract for deed, it may be easier for your lender to foreclose on the property. Even if you have made many payments to your lender, if you default on your payments-depending on the terms of the contract for deed-you risk losing the home and the equity you've built up on the loan. Typically, a contract for deed is easier for a lender to foreclose on than a typical mortgage.
- How can I decide whether to strategically default on my mortgage?
- Many people's homes have lost a significant amount of value in the past few years. If you have experienced this, and your mortgage payments exceed what they should be in light of your home's value, you might consider a short sale, or another option, to escape your large mortgage payments. Call one of our attorneys if you would like to discuss strategic default issues.
- Can I postpone a sale?
- Yes, you can postpone a sale. You must file an appropriate Affidavit of Postponement with the County Recorder's Office, the Sheriff, and on the Bank's Attorney fifteen days before the foreclosure sale. This will postpone the foreclosure sale for five months, but will shorten the redemption period on your house to five weeks.
- What is a short sale?
- A short sale of a property is an agreement between the homeowner and the bank to accept less than the full amount of the debt so that the property may be sold. Short sales can be used to prevent foreclosure and allow a homeowner to sell their property without suffering the consequences of a foreclosure
- Foreclosure versus Bankruptcy
- Depending on your situation, filing bankruptcy may make more sense than strategic foreclosure. This depends on whether you have a second mortgage, your credit score, other debts you may have, and several other factors. Call one of our attorneys if you'd like to learn more about your particular options, and the advantages and disadvantages of filing bankruptcy.
- What are the effects of foreclosure?
- The most serious effect of a foreclosure is that you will lose your home. Furthermore, it will damage your credit score, and may make it difficult for you to receive financing for your home or other purchases in the future.
- What is a Deficiency judgment?
- For certain types of foreclosures, called foreclosures by action, a bank may be entitled to a deficiency judgment against you. A deficiency judgment is calculated by subtracting the foreclosure sale amount from the total value of the mortgage.
- Do I need an attorney for a short sale?
- It is important to have an attorney review your short sale documents before closing in order to ensure that your liability to the bank is fully satisfied. Sometimes, banks will remove the lien from the property allowing the sale to be completed, but retain its debt against the homeowner, and the homeowner may still be liable for any deficiency between the amount of the sale price and the outstanding balance on the mortgage.
Contact a Twin Cities Lawyer Today
Contact our office today to set up a free consultation. You can reach a helpful and experienced Minneapolis/St. Paul, Minnesota, attorney today at 651-315-8755, Toll Free at 866-929-0453, or by sending us an e-mail online.
