From: alvin@zany.mti.sgi.com (Alvin Oga)
Newsgroups: misc.invest
Subject: Re: Investment Foreclosure - Can they take personal property too?
Date: 13 Oct 1992 00:48:42 GMT
Organization: Mips Technologies, Inc.
Distribution: world
Reply-To: alvin@zany.mti.sgi.com (Alvin Oga)
NNTP-Posting-Host: zany.mti.sgi.com
Keywords: Foreclosure.

|>  
|> Can foreclosure of the investment property by the mortgage company give
|> them the right to go after my personal property?  By that I mean, Can they
|> force the foreclosure of the personal property to cover there loss or are
|> they only able to put a lien on it? How can I protect myself?
|> What can I do to minimize the damage on my credit?
|>  
|> The investment property has been on the market for 6 months and not one 
|> showing.  The list price is already $20k below what I bought it for. 
|> 

THAT DEPENDS ON WHAT STATES YOUR PROPERTIES IS LOCATED.

If you're in a 'non-deficiency judgement' state like California, then, NO
the bank cannot come after your or any of the 'other assets' if the one house
was not sufficient to repay the loan.  However, if you ARE in a deficiency
judgement state, like Texas, then yes, the bank can come after ALL your 
assets and hold you personally liable for all the debts owed the bank.

So then comes the question:  Why doesn't all these S & L in Texas go after
all the homeowners that just simply walked away ?
Looks like Texas is NOT enforcing their 'deficiency judgement' rights for 
their creditors.

If  you were to lose one of the homes, save your investment  property,
and keep it from going thru the entire foreclosre process.  Most banks
take a dim view of  investments that went bad. 

THINGS THAT COULD BE DONE:
1.  Sell one or both properties even if it results in a loss....
2.  ALL PROPERTIES WILL SELL AT THE RIGHT TERMS...
	forget the price !!!!
3.   If you or one of the properties is in California... Your solution
	is relatively simple and straight forward....

CAUTION:  If you owe the banks $ 100,000 in loans, but the house is
	only worth $ 80,000 and you sold it at $ 80,000....
	THEN THE IRS THINKS/CLAIMS THAT YOU HAVE
	AN EXTRA $ 20,000 OF INCOME !!!!!!
		(called 'debt relief'...call your CPA....)
	Talking about rubbing salt in a bleeding/homeraging wound.

BE CAREFUL OF WHAT YOU DO....HOW YOU GET OUT OF THE
PROBLEM YOU'RE IN....

Minimizing damage to your credit would depend upon:
a.  whether or not the bank reported your 'late mortgage payments' (most likely)
	If they did, it's too late...the damage is done...
b.  whether or not the 'notice of default' has been filed....
	If they did, it's too late....the damage is done...
If neither events have occured, after checking all three credit bureaus,
TALK WITH THE CREDITOR...and make amends with them....
take a temporary monetary loss to save your credit....
How much is that worth ??? Only you know that answer when you try
to get another bank loan, refi for the house, or a new car loan a few years
later and get turned down due to this  'one-time bad credit rating'....

IF NOTHING ELSE....ALL PROPERTIES WILL SELL IMMEDIATELY
AT THE RIGHT TERMS.....forget the price.....
	(keep the price reasonable and don't send those silly $ 1,000,000 flames)
	After  running the 'numbers' you know whether it's a good deal or not
	regardless of the price.

GOod luck
alvin		alvin@zany.mti.sgi.com
(408) 988-8500
Newsgroups: misc.invest