The fact that a foreclosure is carri out does not mean that the outstanding. Debt we have with the bank is immediately settl. 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 procure 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 Korea Phone Number Data 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 han over his home to the bank . In other words, he would not continue to owe money to the bank after the auction.
What happens if after the auction you continue to owe a percentage of money to the bank?
As we mention 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 obtained at the auction is not enough to cover the entire debt. So, in the event that France 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. The assets that will probably be seiz judicially are those indicat in article of the Civil Procedure Law , they are: Money or checking accounts of any type. Art objects and jewelry.
