Who is responsible for paying for home repairs in a foreclosure? How? 10 Answers as of May 07, 2015

If a creditor is foreclosing on a house, does the creditor have to pay the grant loan back through the town for home repairs? Or is the owner/borrower responsible for the repayment of such a loan?

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Ronald K. Nims LLC | Ronald K. Nims
If I read your question correctly, you're referring to a loan that you've already taken out and used to money to pay for home repairs. The way a foreclosure works is that the property is sold, the proceeds go to pay off the first mortgage, if there is anything left over it goes to pay the second mortgage, if there is still anything left over after all the liens are paid then the remaining money would go to the former owner. If there isn't enough to pay off all the liens, then the lenders would come after the former owner for the remainder of their loan.
Answer Applies to: Ohio
Replied: 5/7/2015
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Typically the foreclosing party will make the repairs. There are exceptions. For example, if the damage to the home was deliberate.
Answer Applies to: Colorado
Replied: 5/6/2015
Law Office of Michael Johnson
Law Office of Michael Johnson | Michael Johnson
If the home gets foreclosed and you file for bankruptcy you will get rid of the debt.
Answer Applies to: Florida
Replied: 5/6/2015
A Fresh Start
A Fresh Start | Dorothy G Bunce
So as I understand it, you borrowed money from the local government to make home repairs and now are losing the home in foreclosure. If the house sells for more than the amount you owe on the first, the government, who holds a second mortgage, will get paid any difference, but not more than the total owed. If there isn't enough left to pay the first from the foreclosure sale, the second mortgage will die but only as to the property. You will still owe the government on this loan because you signed the loan papers.
Answer Applies to: Nevada
Replied: 5/5/2015
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
A proper answer to your question requires reading all the documents which you signed and reviewed when you got the grant. Without such a review, no lawyer can give you a professional opinion. Find a good real estate lawyer and pose the question to him or her. Good Luck.
Answer Applies to: Wisconsin
Replied: 5/5/2015
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