Over the years I have had so many homeowners asked me, who gets their Equity if they foreclose on their home. Watch the video below where I explain everything you need to know.
Transcription
Hi everyone, this is your Tampa Bay realtor, Lance Mohr and in this video, I want to go over who keeps the equity in a foreclosure. Do you get the money? Does the bank get the money? Who actually gets the Money if you have to foreclose on a home?
This video, I probably should have done many years ago because I do get a lot of questions from people from time to time on the equity on a home. Let’s say you have a $300,000 home and it's worth $300,000 dollars but you only $200,000 there's going to be a hundred thousand dollars of equity there. If you are going on a conventional Loan like Fannie Mae, Freddie Mac or you’re going on to government loan FHA or VA, whatever is left over you’re going to get but keep in mind a lot of it's going to be tied up and chewed up by the banks, attorney fees, differently penalties and the costs that you're going to have to pay if your and homeowners association, there could be cost with that. If you owe any back property taxes. If you owe money to the IRS or anything it's all going to be chewed up. But if there's anything left over, maybe you own a house worth $300 000, you owe 200,000 and let’s just say all the fees and everything $60,000 that $40,000 you’re going to get. Now if you’re going to sign a private note or what’s called a hard money loan with an individual or a corporation they can write the documents however they want and a lot of a will put down in there that if there is any equity they basically get to keep it all. But I would also say check your state and local ordinances. What they will allow being done. Read your note, look it over and it over.
If you have any questions ask the company who wrote it but in most cases you keep it. If you're going on a regular loan don't worry about that. If you have any questions at all reach out to me. I love have helped you and I love to talk to you. If you're looking at buying or selling a home I would love to help you as well. Have a wonderful day. I wish you the best of luck and forget to subscribe and hit the little bell in your get notified whenever I do these videos.
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