Can I buy a home for cash before my current condo is foreclosed on?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can I buy a home for cash before my current condo is foreclosed on?

My foreclosure is imminent. I want to buy a low price home in a 55 and over adult community. I have been putting money into an escrow account since I have been unable to meet my mortgage.

Are there any legal ramifications in doing this?

Asked on June 21, 2016 under Real Estate Law, New Jersey

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Yes, you allowed to buy a home (or anything else) for cash while you are being foreclosed upon. The legal ramification (for any tax consequences, speak to an accountant or tax preparer) is that if the foreclosed condo brings in less than the outstanding balance on the loan/mortgage (after costs of the foreclosure and sheriff's sale are factored in), the lender can come after you for the "deficiency" or shortfall and, if you do not pay it, could potentially put a lien on the new property.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption