FHA Insurance...

[Petrified]

FHA Insurance Question

What is the name of your state? LA

My home is scheduled for auction. I called the national HUD office and was told that since I have FHA insurance, I am not liable for balance owed once the house is taken over/auctioned. Is this so?
I was told by several people that if the home balance owed was $140K and the house auctioned for $60K that I was responsible for the $80K difference.
I have been trying to look up on the web the auction/foreclosure process but haven't really had any luck. I just hope what the hud lady told me is correct. That is that the insurance/government pays the difference and I am not financially liable (getting ready to file bankruptcy).

Anyone else know anything about this?

Thanks...

 

[Petrified]

Wow..disappointed that no one replied. I was hoping that someone may have some insight about this.

I just wanted to know if, when my house is auctioned, am I responsible for the deficiency or does the FHA insurance pick that up.

Anyone?...

Have a blessed day.

 

[HomeGuru]

What is the name of your state? LA

My home is scheduled for auction. I called the national HUD office and was told that since I have FHA insurance, I am not liable for balance owed once the house is taken over/auctioned. Is this so?
I was told by several people that if the home balance owed was $140K and the house auctioned for $60K that I was responsible for the $80K difference.
I have been trying to look up on the web the auction/foreclosure process but haven't really had any luck. I just hope what the hud lady told me is correct. That is that the insurance/government pays the difference and I am not financially liable (getting ready to file bankruptcy).

Anyone else know anything about this?

Thanks...

**A: the several people are correct. The term is mortgage deficiency judgement. Search and ye shall find.

 

[HUD-1]

HUD/FHA does not normally pursue deficiency judgments unless there is fraud involved. You may have a tax issue regarding the forgiven debt though...