AboutRobert Hanzel Expertise I can answer questions regarding most areas of consumer and commercial finance. I have extensive experience regarding various types of loans (commercial, consumer, USDA, SBA 504, SBA 7A, foreign), many investment vehicles, credit, economics, and banking. I am not an expert regarding tax structures and other tax issues and thus would not recommend asking tax related questions
Experience Over 11 years Financial, Investigative, and Legal experience including loan review, due diligence, financial analysis, collections, and risk management. I have managed Credit Administration, Loan Administration, Credit Analysis, Credit Review, Liquidation Departments, Collections, and workouts
Organizations Both the Risk Management Association and the Bank Administration Institute.
Education/Credentials I have obtained both my Credit Risk Certification from the Risk Management Association and a Loan Review Certification from the Bank Administration Institute.
Question I have a mortgage with a bank for land valued about 30k and the loan balance is 99k (it's a long story why the balance does not match the land value). I'm just curious, if I were to stop making payments their only recourse is forclusing on the land and nothing else, right? I also own 3 other homes not mortgaged by them.
Answer Since you are personally signed on the note, than they can come after you even after they foreclose on the land. They will foreclose on the land, sell it, and apply the proceeds to the balance of the loan after paying for all of the fees (attorney fees, professional fees, interest accrued, late fees, etc). Then, they can go to court and get a judgement against you for the residual balance. They can take this judgement and attach it to any other assets you may have, thus they could attach it to the other homes and foreclose on those as well. Unfortunately, they can go after any and all assets you have, including garnishing your wages to pay for it, if you decide to default on the loan. I hope this helps to clear it up for you.
