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tess41

Foreclosure Deemed

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What does it mean when your credit report shows 0 balance? Does it mean I will get a balance once they sell the house? My house foreclosure on Dec 2017. It was a FHA LOAN.

 

Thanks

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No this is just showing that they took the property to close out the loan.

 

The only way you would get money is if at the foreclosure sale in December they got more for the house in that sale than was owed. Including late fees, foreclosure fees, etc.

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I’m not expecting any money. I was trying to figure out on my credit report it’s says zero balance and I don’t know what that means? So I guess my question is will I owe something once the bank sells the house? Do I owe the bank anything?

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I’m not expecting any money. I was trying to figure out on my credit report it’s says zero balance and I don’t know what that means? So I guess my question is will I owe something once the bank sells the house? Do I owe the bank anything?

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There is a chance they will send you a 1099 for the difference but banks rarely do that. You won’t owe them anything directly.

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Deficiencies vary by state (Assuming there is a deficiency). A deficiency is when the lender/servicer/bank forecloses and nets less than the total debt owed. If you owe $200,000 and the lender forecloses at that amount, but the property is only worth $100,000, there is a good chance you will see a 1099 for $100,000. Again, depending on the state, that may be the end of it or, that may be the beginning. You won't see a 1099 necessarily if they are going to go after you for the balance, if they are allowed to do so by statute.

 

I would be less concerned about what it says on your credit report than I would be with the financial impact of the foreclosure. What state are you in?

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Thanks.

 

Oh ok I was looking to see a balance on my credit report and its says zero balance and account closed. The house is still on the market.

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PA is a judicial state meaning, they sued to foreclose. Chances are, you may be subject to a deficiency claim. Don't try to combine the foreclosure action with the credit reporting action. They are independent of each other. Just because the credit report may show the balance at zero and the account closed, doesn't mean the lender isn't going to come after you or at the very least, send you a bill. I'll wager the credit portion was just zero'd out and closed for convenience and ease.

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