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Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 117358
Experience:  Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
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I purchased a home in 2001 and I was forclosed in 2011....I

Customer Question

I purchased a home in 2001 and I was forclosed in 2011....I was told that I would be able to purchase the home outright in time...and now the time has come.....the 1st loan is on my credit report and I have been asked to can I remove myself....I am responsible for the first loan? is it attached to the home?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Unfortunately, the foreclosure would remain on your credit report for 7-10 years. You are responsible for the first loan, even if they foreclosed. Once they foreclosed, if they sold the home for less than the loan balance, you can be personally liable for that amount. Under GA law, they have 6 years to sue for breach of contract to seek the deficiency judgment against you if they choose.
If you have a purchase agreement with a seller on a new home, you are only liable to pay what you agreed upon with the seller. If the seller will not agree upon your price such that you can get a loan on the property, then you would need to continue to negotiate with them I am afraid.
Customer: replied 1 year ago.
The seller forclosed on the title only, the loan still remains on my credit report and in good standings. Does this loan follow the home (The outstanding balance)? I remain in the home and want to purchase.
Customer: replied 1 year ago.
Also, this is a wrap around mortgage.
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your reply.
The loan remains on your credit report, as you remain liable for the loan balance even after foreclosure, it does not stay with or follow just the home. If the loan is secured by the home, the loan lien is on the home, but you are also personally liable if the lender cannot get the full amount due out of the home if they have to foreclose.