Can your house be repossessed if the equity is much greater than the outstanding mortgage?
What would happen to the equity?
Let me explain more. I have never defaulted on my mortgage payment. I am hoping that my Dad would invest a little (half the value of one of his houses) in order for me to start up a business.
It isn’t MUCH of a risk, because the business is a dead cert, but what I really wanted to know was, would he be risking the WHOLE house for the value of only half of it?
Repossession
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March 21st, 2010 at 7:19 pm
The mortgage company can foreclose on it if you don’t make your payments regardless of equity.
March 23rd, 2010 at 2:19 pm
Yes because you are defaulting on the loan contract, the equity would go to the bank.
March 25th, 2010 at 8:39 pm
Yes, but lenders will usually work with you if you are having trouble making your payments. They’d rather have a few late payments rather than the house back. It is important to contact your lender and let him/her know your situation. That way they can work with you. If they don’t hear from you, they look at you as a deadbeat.
March 26th, 2010 at 1:29 pm
Yes, might get repossessed quicker since the mortgage holder wouldn’t have to worry about losing money on it.
If it brought more in sale than you owed, you would receive the excess. But, with foreclosures and quick sales, don’t be so sure it would, regardless of the equity.
March 26th, 2010 at 11:08 pm
Yes, It can be repossessed. The bank would then sell the house (probably for much less than what it is worth) and pay off the mortgage. You would get anything that remains minus some pretty substantial penalties and fees.
March 28th, 2010 at 1:15 pm
Your house may be foreclosed on until the mortgage terms have been satisfied. When a house goes to foreclosure sale the proceeds of the sale go towards the total debt owed by the (former) homeowner. Any $$ left over after the total debt has been satisfied goes to the former homeowner less any other liens or title positions on the property.
March 28th, 2010 at 4:10 pm
Yes, if you stop paying the mortgage, your house could be foreclosed upon. Equity is not real, it is dependent on resale of the house.
Once the mortgage company sold the house, whatever profit the equity was would be applied to the remaining balance, late fees, and legal fees of the foreclosure proceedings.
As to what would happen to any leftover money, I don’t know…but it would, I feel, have to be refunded to the original buyer.
March 30th, 2010 at 9:40 pm
i work for a mortgage company and yes, unfortunantly it can get repossesed, if you already recieved a notice of default letter the bank is allowed to forclose your home and take the remaining equity balance, sorry hun… you should call chase banc, they help with that sort of situation…
April 2nd, 2010 at 11:44 pm
I would agree with the other answerer’s suggestion to try and work out something with the mortgage holder. Mortgage holders will definitely foreclose on your home if you don’t make any attempt to work out an agreement, but are almost always willing to work something out, because it usually costs them at least $20,000 to foreclose. Sometimes much more. I don’t know what your situation is that you became unable to pay your mortgage, but it may not be too late to refinance now and save your home. It’s called a Foreclosure Buyout, and most mortgage brokers can find the program if you qualify and if you want to save your house. Even if you have to refinance and turn around and sell it, you would be saving some of the equity in your home.
April 5th, 2010 at 8:57 am
This happened to an uncle of mine fairly recently. Tha bank foreclosed because he had a overdraft scured on a house worth £300, 000. The overdraft was in a joint account with my aunt and the reason for foreclosure was that she filed for divorce and wanted to dissolve the joint account. The bank swooped in almost immediately to snaffle the house.
Banks dont care about equity, they just want their money and will sell the house for the amount owed. Ridiculous I know, but apparently true.