Will they make me take money from my 401k and/or any current saving.
2007-03-13 18:42:09 · 5 answers · asked by Becky H 1 in Business & Finance ➔ Personal Finance
Yes.
You owe the amount you borrowed, and promised to repay, not what the house is worth.
You will have to make up the difference.
2007-03-13 18:47:00 · answer #1 · answered by Larry R 6 · 0⤊ 0⤋
wait wait wait!!! if u short sell... u had better have agreed with your lender on the price first!!!! u cant just pocket the money from selling the house, or they will chase u in court and u will lose. short sell means an investor (like meee) has found out that u r behind and contacts your lender and says this guy isn't going to pay u ever. let me buy the house at x discount of the balance. everyone has to be in agreement. they don't want the house, their business is lending money not real estate. if u do a short sell its expected that u walk away from house with no cash out, period. otherwise the lender would just keep waiting for u to pay! the short sale means u are saying "look lender, i can't pay u. let me just walk away"
any other questions, feel free to ask! this can get very hairy.
2007-03-14 01:48:02 · answer #2 · answered by firemedic311 3 · 0⤊ 0⤋
short selling and being unable to cover the loss if it happens means you can be sued and have all of your property taken... including your 401k
You can also go to prison for securities fraud. (Short Sell is a stock market term... not a real estate term)
if you don't have the money to pay your mortgage... sell the house. Foreclosure means you lose any "equity" you might have.. they always have lawyer fees and court costs in excess of the equity.
2007-03-14 01:47:05 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Heaven's yes they'll want their money and they'll do whatever they have to get it - including sue you...where you'll have to pay their attorney's fees.
And, I'm 99% sure that your mortgage company won't allow you to sell short. They won't allow the closing of the buyers without full payment by you. No way around it. They will get their money from you.
2007-03-14 01:47:44 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yes - of course, you owe a debt and that is what is necessary to repay
2007-03-14 01:44:54 · answer #5 · answered by Anonymous · 0⤊ 0⤋