Say you are an owner of a house and renting the house out and the tenant/tenants cannot pay the rent and the?

kate211982: Say you are an owner of a house and renting the house out and the tenant/tenants cannot pay the rent and the?
house is foreclosed. Is there a HUGE penalty fee that the owner has to pay on the house, like $ 30,000? I know someone and he said he has to pay that much when the house he owned was foreclosed. Is this true? Thanks!

Answers and Views:

Answer by Joicon Haubar
when the foreclosure process starts all you need to pay is the amount that is delinquent ie three months rent

Answer by T E
the $ 30,000 could be ths shortfall between his debt with the mortgage company and the price of house sold after foreclosure, plus other legal and utility disconnection fees and taxes owed.

Answer by real estate guy
First, as a landlord, it’s your responsibility to collect the rent. If you have a deadbeat in the place, kick them out -and start the process the Day the rent is late. DO NOT WAIT. Their problems are NOT your problems-and your post is proof of this.

In regards to the FC and what you will owe. YES!! you will owe the bank the full balance of their loss. In addition, the IRS WILL!!!!!! tax you at the income rate for the banks loss.

TALK WITH A LAWYER TODAY. YOu can’t just walk away. The rules that apply to investment loans are NOT!!! the same as they are for primary loans on your own house.

Answer by Janice 10
The $ 30,000 is most probably the difference between what the home sold for and what is owed on the loan to the foreclosed home. So yes this is true. Happy Holidays.

Answer by Iffy
Yes the owner owes the mortgage company the balance between was the foreclosed home sells for and how much is owed. Outstanding mortgage of 200k, house sells for 150k previous owner owes 50k

Answer by MIND THE GAP
In some states, a lender CAN NOT recover their loss if the house sells for less than what is owed. Depends on state law.

Answer by Dogs are 4 Life, not just for Christmas
If the house was going into foreclosure and decided to sell the house on a short sale and he sold it for $ 30K less than what he owed the bank then yes, he is still liable for the balance owed on the mortgage unless the bank agreed to forgive the difference.

If you walk away from the house and the bank takes it back you are still liable and if they manage to sell it for less than what is owed they could come after you for the difference.