If the value of the house is that I am still liable on the outstanding mortgage?

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What if my home value drops? Am I still personally liable on the mortgage? I heard that you can hire a real estate lawyer and in fact the loan balance to the lower house in California.
I own a home went into foreclosure in 2007. It was sold to 366K, but 320K for mortgage and 80K = 400K. I received a letter from a collection agency Dyck O’neal words: “.. the attached copies of documents that the debt Dyck O’neal The amount of the date of this letter is capital, interest and accrued expenses 94K support includes “The Chase loans were first, so I guess they transferred the account to collections. The situation I’m too long to explain and very complex, but I did not pay much money for these people. What are my options? Do I need a lawyer and if so, what kind of lawyer should I, a real estate company, lawyer or what? I do not know what and I am very worried because I have no money for that. I declared bankruptcy in 2000 due to my exhusband maxing all my credit cards in my name. I do not know if I have said, or if it can help with this debt 94K.

13 Comments
  1. Reply
    muneepenee
    April 29, 2011 at 8:54 pm

    yes, yu gotta pae for the hous.

  2. Reply
    oakhill
    April 29, 2011 at 9:09 pm

    If you signed a mortgage agreement to borrow $ 100,000 for a house, you are contractually obligated to meet the terms of the agreement. The current value of the home is not a factor. In some cases, if the mortgage holder agrees, the amount owed could be renegotiated. The bank/mortgage holder is not obligated to change the terms. There have been proposals in congress concerning re-valuing mortgages down to their current worth, but there is no law at this time.

  3. Reply
    src50
    April 29, 2011 at 9:41 pm

    You are liable for the loan amount.

  4. Reply
    Ming
    April 29, 2011 at 10:03 pm

    YEP.

  5. Reply
    organizeyourbiz
    April 29, 2011 at 10:47 pm

    WHAT? You’re kidding right? You took out the loan and are responsible for the entire loan. It will not lower because your house decreased in value. Where have you been the last couple of years?

  6. Reply
    mykatesmom
    April 29, 2011 at 11:00 pm

    Yes. You are liable for the amount of the outstanding mortgage, regardless of the current value of the home.

  7. Reply
    Leo F
    April 29, 2011 at 11:41 pm

    You got to be kidding. If the market was up 25% would and the value of your home went up 25% would your Mtg payment go up or balance of your loan go up?????? NO so why would you think it the value of your home goes down you should owe less???? You really just don’t get it.

  8. Reply
    acermill
    April 30, 2011 at 12:28 am

    You heard incorrectly. If you borrowed $ 200K to buy a house, you are expected to pay back all $ 200K, plus the interest charges until it is paid off. Why on earth would a bank lower the amount owed just because the value of the house drops ? That doesn’t work with car loans, and it doesn’t work with mortgages either.

  9. Reply
    Landlord
    April 30, 2011 at 12:45 am

    Mary, you were already given the money. You already spent it. The value today does not matter, you took $ XX amount and promised to repay it. Now you are refusing because the value is not there?

  10. Reply
    regerugged
    April 30, 2011 at 1:28 am

    Yes, you need to talk to a real estate attorney. You may have to file for bankruptcy again.
    You can try http://www.handelonthelaw.com for a referral in your area.

  11. Reply
    loslunas87031
    April 30, 2011 at 2:25 am

    i know this does not help much but there are hundreds if not thousands in the same boat as you are.

    b/k may be an option but that can only be determined by a bankruptcy attorney in your local area. Unfortunately I know this does not help much but in the eyes of the law and the agreement you signed you still owe the balance due for the money you borrowed to purchase the property.

  12. Reply
    Patrick
    April 30, 2011 at 2:51 am

    Both of the first two answers have it correct. A BK may be the only option for you here. Legally the debt is considered yours as you borrowed the money and didn’t pay it back. The bank did what they could to collect the amount owed by foreclosing on the home but was only able to get $ 366K. The remainder, plus legal fees is money you still owe.

    Good Luck!

  13. Reply
    PIE R SQUARED
    April 30, 2011 at 3:45 am

    Get a lawyer NOW.

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