Full question:
A HOME OWNED BY HER EX-HUSBAND AND HERSELF IS BEING FORECLOSED UPON. NEITHER PARTY IS INTEREST IN RETAINING THE HOME, A BANK DOES HOLD A TITLE ON THIS HOME, THEY HAVE BOTH BEEN SERVED PAPERS NOTIFYING THEM OF THE MONEY OWED, BUT NEITHER CAN PAY ON THIS HOME TO STOP THE PROCEEDURE. WILL THE BANK SELL THIS PROPERTY AND WILL THE MORTGAGE BE CONSIDERED PAID?
- Category: Banking laws
- Date:
- State: Florida
Answer:
Unless your mortgage instrument contains an exculpatory clause, you will still owe the debt. An exculpatory clause is a clause whereby the lender agrees that if it forecloses, it only will get the proceeds of the sale and the rest of the debt will be cancelled. Without such a clause, if the sale of the property doesn't meet the debt owed, the borrowers will be liable for the rest of the debt, including foreclosure costs.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
