Foreclosure: What if there is still outstanding debt after the auction?

The fact that a foreclosure is carried out does not mean that. Outstanding debt we have with the if there is bank is immediately settled. This is because, in some cases, it is not possible to obtain enough money in the auction . In these situations, the debtor will continue to owe money until he or she is able to pay off the outstanding debt. Foreclosure: What is it about? First, it is important to be clear about what a foreclosure is. This is a procedure that the banking entity can carry out when the requirements to apply the. Early maturity clause of the mortgage contract are met . For this to happen, the client has to owe a certain number of months, or the equivalent of a percentage of the mortgage loan, depending on its repayment period.

Is the debt canceled with a foreclosure?

The reality is that in some cases yes and in others no. The main problem arises when the money necessary to pay off the debt is not obtain once the auction is over. This means that, in addition to having. Lost their home, the debtor will Taiwan Phone Number List continue to owe part of the money to the bank. Settlement It is necessary to make it clear that in. A very small number of cases, the mortgage loan contemplates the possibility of dation in payment. This means that in the event of non-payment, the debtor would be releas from the debt from the exact moment in which he hand over his home to the bank. In other words, he would not continue to owe money to the bank after the auction. However, the reality is that very few mortgage loans establish dation in payment. If this option does not appear in the contract , it is possible to try to negotiate with the bank, however, it is not oblig to accept.

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What happens if after the auction you continue to owe a percentage of money to the bank?

As we mentioned above, once the home has been foreclos on, there is the possibility of continuing to owe money to the bank . This occurs when the money at the auction is not enough to cover the entire debt. So, in the event that Czech Republic Phone Number List the debtor does not pay the outstanding. Debt after the auction, the banking entity will have the possibility. Of demanding payment of the remaining debt judicially, that is, by filing a lawsuit. In this situation, there would be no other option but to pay since. If you do not do so, it is possible that you will suffer an embargo. It is essential to be clear that, although the amounts owed for non-payment of the mortgage cannot be with the Second Chance Law. The resulting debts once it has been out are within the application of this mechanism. the auction.

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