Foreclosure Consequences?

chad p: Foreclosure Consequences?
In Virginia, have rental property, losing money every month, half it’s value from mortgage amount. Will let it foreclose. Have no assets/properties/savings in my name. Will they come after me when it’s all said and done or just write off balance on a 1099? Don’t want to buy ever again and pay cash for everything so please save the “credit score” speech. Credit scores and credit in general is a scam – period.

Answers and Views:

Answer by Lucky111’s
As far as I know the consequences are:
They take the property
They ruin/damage your credit

Game Over…

How can you lose half it’s value? From a moneymaking perspective your costs for the property minus the income generated would be what your losses are. But still when you pay the mortgage off in 30 years it’s a 70% income earner as you will still have to pay taxes/insurance and maintenance. Some people rent to make money each month and I rent to pay off the mortgage…I consider it a retirement plan…although I just refinanced and now I will make money every month it’s rented.

Answer by infinite crisis 247
i think that your logic is very flawed here. look, you’re going to do what you want to do, but if you think that having jacked credit will not affect you at all in our economy, you are living in a fantasy world. that foreclosure will be sitting on your credit report for up to 10 years. and yes, when the bank forecloses, they will come after you in court for the shortfall amount and pursue a judgment. now, as you don’t have anything in your name, it will be harder for the bank to collect on a judgment, but this is a sword of damocles that is going to hang over you for years. also, they can also go after your wages or your tax refunds. lastly, a 1099 is a report that you must pay capital gains tax on the shortage amount after the bank sells the home. this could be a huge tax bill. you had better rethink your strategyhere.

Answer by Landlord
Lucky must not invest. The game is not over, not by a long short.

They will be able to seize other property, real and otherwise, and garnish your taxes and wages if you still have not repaid the money they gave you.

This was a business loan, you do not have any of the free rides to keep the money that the home owners are receiving.