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When the bank takes your house

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  • 03-10-2008 11:49am
    #1
    delly
    Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 7,654 Mod ✭✭✭✭


    I'm just curious on this based on the other thread that refers to banks renting the house that they have repossessed back to the original home-owner.

    I'm just wondering how many payments would have to be missed before the bank takes the house? And also if the bank takes your house, do they give you the extra value back that the house may be worth over your mortgage? And lastly if you knew the bank where close to seizing your house, would you not try and sell it first?


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    #2
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    The bank has to go to court to "repossess" the house. The court then orders the sale of the asset. What happens next, depends on a certain number of factors. Sometimes the sale goes on the open market and both wait for the sale to go through. The bank's debt takes priority - once it's paid off, any excess is given to the owner.

    Other times, such as when the bank rents the house back to the owner, they simply enter an agreement whereby the owner transfers the asset to the bank at market value, and then the owner's rent payments may or may not be offset against any shortfall in the mortgage total.


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