Yes...this is a true story. The sellers of the property has asked that their name name not be mentioned. When the sellers went to sell their home...their home that was now about $250,000 under water...not to mention the 1,000's of dollars that was spent of their own money into the home...they had no idea what was about to take place. Like normal the seller contacted their lenders (they had two) to inform them that they were going to have to do a short sale on their home. The sellers at the time was still paying their payments but was draining their savings by almost $3,000 a month. They informed their local bank that they no longer could afford to pay their payment.
What happened next shocked everyone involved. Once the seller informed their local bank in writing that they could no longer pay their payments, their bank emptied their business account to the tune of $15,000 and closed their account. Now for the average Joe...having $15,000 in the bank seems like a lot, but for a business who has as much in expenses each month...the money was barely enough to get through one month. So the sellers were left without any means of paying their business expenses and are now being forced into bankruptcy.
Now it seems as if the bank was in the wrong...legally. How could a bank legally be able to rob someone blind...especially someone who is already hurting financially. However, the bank was within their legal right to do just what they did. The seller's business and all of its assets were tied to their loan as well as the the home.
Now...don't get me wrong. Regardless if the bank was legally able to do what they did...who could ever be so vial that they could do that to one of their clients. Especially a local bank doing it to a local business owner. It seems completely unfathomable that a bank...a local bank could do such a thing.
So the question is...are you at risk of having your lender take your funds from your account if you are unable to pay for your mortgage? Most mortgages are secured only by the real estate, so if you are unable to pay, their only remedy is foreclose. Now once they foreclose and resale your home, some lenders may have the right to sue you for a deficiency. With the market falling as far as it has...this could be $100,000's. However, if your loan is also secured by your assets, those assets could also be funds in your account.
Now this doesn't apply to every mortgage and every mortgage holder. But homeowners need to make sure they have all the facts before preceding with a short sale. To get a better understanding, you can get a free copy of the book "Home Owner's Guide to Real Estate Short Sales." Simply go to www.ShortSaleAuthority.net.
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