Hi,
My house is going under foreclosure and there are two loans. The second loan put a judgment on me. I am trying to sell the house under short sale. Will they come after me for whatever money they loose? If so, to what extent? If I file for bankruptcy will that take care of this mess so that I can begin to rebuild my life? I don’t have anything of value and currently unemployed and my family and I are actually living with my parents in their apartment now. I am a first time buyer and have not refinanced. The house was bought on November 2007. I also stopped paying about five months ago when all this began. Will this never end and will they come after me until I die?
WHAT CAN I DO?
2007-08-06 16:11:50 · 7 answers · asked by brittany martinez 2 in Business & Finance ➔ Renting & Real Estate
That depends upon the wording of the contract. If it's "without recourse" they have to accept the proceeds from the foreclosure sale as payment in full. If it is "with recourse" then can go after you for the shortage.
Typically when you have an agreed short sale, the lender agrees to accept the proceeds from the short sale without recourse but that is up to negotiation if the note is with recourse.
If they are going after you for any shortfall, filing BK could solve the problem. Consult with a local attorney for advice specific to your situation.
2007-08-06 16:27:13 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
If you do a real short sale, and your attorney knows what they are doing, they don't come after you. The attorney negotiates the payoff where you are marked "paid in full" for less than the full amount, and it's over and done. This isn't simple, and it isn't automatic, so you want a real estate attorney, not someone that does another area and was having a slow week when you called.
In foreclosure, yes they absolutely can come after you for the shortage.
2007-08-06 16:26:30 · answer #2 · answered by open4one 7 · 0⤊ 0⤋
Unfortunately, the bank will go after you for whatever outstanding debt owed. I would use bankruptcy as a last resort as this will stay with you for a long time. Look into a pre-foreclosure sell to preserve your credit - again the money will go to the outstanding debt, but you will protect your credit. Even if you don't get enough to cover the entire debt, they (the bank) may forgive the balance. Make a face to face appointment with them. Sorry you are in this situation...good luck!
2007-08-06 16:20:29 · answer #3 · answered by Ask-The-Vet 2 · 1⤊ 1⤋
whether they'll try to chase you for the shortage depends on state law and your contract.
however, bankruptcy will end both any attempt to get you to pay the shortage, as well as the judgment.
of course, the bk attorney does expect to be paid, so you'll need a job.
GL
2007-08-06 16:18:45 · answer #4 · answered by Spock (rhp) 7 · 0⤊ 0⤋
Bankruptcy is your only way out. If you can not afford an attorney, call Legal Aid for help.
2007-08-06 16:23:05 · answer #5 · answered by Anonymous · 0⤊ 1⤋
they'll probable do what's called a "fee off" they place the quantity detrimental on your credit document. It maintains to be there for an unknown volume of years or till its paid off.
2016-10-09 09:22:21 · answer #6 · answered by goldthorpe 4 · 0⤊ 0⤋
you got the right thought file BANKRUPTCY and tell them holla
2007-08-06 16:17:54 · answer #7 · answered by keith b 1 · 0⤊ 1⤋