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RealEstateAnswer
RealEstateAnswer, Lawyer
Category: Real Estate Law
Satisfied Customers: 25364
Experience:  10+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
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I own a house in Nebo NC I bought it with my ex when she

Customer Question

I own a house in Nebo NC I bought it with my ex when she decided to hang with the bill and divorce me. I didn't know there was a balloon payment do this week. The bank will extend the note for three more years and then the balloon payment. I have a choice to sign the extension or let the house go back to the bank. I've been pay for 7 years and the house has been on the market for the same time. What can happen if I let it go back to the bank?
Submitted: 6 months ago.
Category: Real Estate Law
Expert:  RealEstateAnswer replied 6 months ago.

Good morning. If you stop making payments on the note, the loan will go into default. Once that happens, your credit will be effected and be lowered. Eventually, the bank will foreclose and take the home back. Then, depending on the sale price and type of loan you have, they MAY be able to go after you for a deficiency. In North Carolina, a lender may obtain a deficiency judgment following foreclosure. However, there is an exception to this general rule. The lender cannot get a deficiency judgment if the mortgage was a purchase money mortgage (N.C. Gen. Stat. § 45-21.38).

Customer: replied 6 months ago.
how would that have to be paid back if they come after me for the remainder of money
Expert:  RealEstateAnswer replied 6 months ago.

A lot of the time, they wont, especially if they know you have nothing to go after. I say this because it takes time, effort and money and if they get a judgment and can not collect, it is only worth the paper it is written on. If they did try and go after you, this could always be settled. You could agree to pay them a lump sum, for less then what is owed or even propose a payment plan with them.

Expert:  RealEstateAnswer replied 6 months ago.

Please let me know if you have any follow up questions or need any clarification on something which I stated above. Also, remember to rate my service at the top of this page, before exiting the site, so I can receive credit for my help. I hope you found it to be Excellent! Only rate my answer when you are 100% satisfied. If you feel the need to click either of the two lower ratings to the left, please stop and reply to me. I want to make sure your experience with the site was as pleasurable as possible and that you are satisfied with the help I provided.

Expert:  RealEstateAnswer replied 6 months ago.

I just wanted to follow up and see if you had any other questions or needed me to clarify something. I am here to help, so please let me know. Thanks!

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