What is the lack of a mortgage?
The lack of a mortgage occurs when the house is sold or changed for less than the amount that is owed in the mortgage. If the house drops significantly to value from the time it is purchased, the house owner can be forced to sell it for much less than the mortgage. The difference between what is accepted for the sale of the house and what is still owed is a lack of mortgage. Individuals who have taken insurance compensation on the mortgage when they first gain it will be able to accept these deficiency funds from the insurance company to repay the bank; In most cases, however, the insurance company turns and comes after the house owner for these funds again.
It doesn't really matter to a bank that holds a mortgage, whether the house is interrupted or whether the house owner sells home separately; They simply want to collect what is owed on a mortgage. If the house owner does not apply, the bank will usually be motivated to adopt legal measures Againstrough the debtor until it renews the funds. In some cases you can not get intoMortgage add the cost of selling house, such as evaluation fees, real estate fees and closure costs, which further increases debt.
As mentioned above, compensation insurance can be used to pay the creditor the difference in the lack of mortgage. However, the insurance company will ask for these funds, so it will always be necessary to pay them. Some people are forced to declare bankruptcy if they cannot pay the difference in the lack of mortgages. Others are trying to do other trips, such as attempting to deal with the bank for the final payment, even if it is not for the amount owed. Experts recommend that this type of agreement be always in writing, so that the bank can no longer require payment after settlement.
If the house owner is forced to sell a house with a lack of mortgage, he will remain in his credit report. It may be more demanding to buy a house in the future or get any other type of loan, from a personal loanAfter an automatic loan. Home owners are generally recommended to take every possible step to avoid mortgage deficiency, and if it is not possible to sell the house for the value of the mortgage, take steps to resolve the debt as quickly as possible to minimize the negative effects on the loan.