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Old 09-07-2008, 07:52 PM   #5 (permalink)
boykinmama
Senior Member
 
Join Date: Aug 2008
Posts: 662
Well, Grace, I'm also a Real Estate Broker and I know that very often the investment is lost if there ever was one... but there are situations where the market is down, the product doesn't sell, and the owner can't meet the mortgage but had a serious downpayment. The fact that it is owned is not negated by the foreclosure. The order of payment is as we have outlined.... but the owner is the ONLY one who can collect anything paid for the property above the value mortgaged and owed in taxes. Certainly there is no case for the bank or the state to get it (except if they died without heirs). And while it is indeed abnormal with today's poorly appraised single family properties for there to be enough investment and to belatedly have a strong enough market allowing what has NOT previously sold to be purchased for more than the combined encumbered amount, IT CAN HAPPEN, because that is the ownership factor. I could actually see it happening most often after the death of parents whose children might not be aware enough or able to take over the mortgage... but they would get the residual amount.

So where did you say you got your law degree?

Last edited by boykinmama; 09-07-2008 at 07:55 PM.
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