My 1st home is almost paid off it is worth about 450,000 and I only owe 90,000. 2nd home I bought at 310,000 and it is only worth 260,000 now, and I still owe 308,000. Will the bank come after the difference on my 1st home.
2007-12-09 15:16:12 · 3 answers · asked by JayR 1 in Business & Finance ➔ Renting & Real Estate
Not if they allow a short sale. When they agree to accept a short sale they agree to let you off the hook. I would be surprised if they allow a short sale if you have other assets.
2007-12-09 15:20:19 · answer #1 · answered by shipwreck 7 · 0⤊ 0⤋
You want to consult an Attorney. You will be 1099 from that mortgage company on the difference of FMV( Fair Market Value ), and you'll be responsible for the difference between what was owned and it's purchase price. The IRS will tax you on that amount as if it's income. If you declared bankruptcy and put the homes under it, you will have protection under the bankruptcy, but you need to speak with a real estate lawyer to know you are making good decisions, in the way of protecting the other asset.
2007-12-09 15:30:38 · answer #2 · answered by Tanya M 2 · 0⤊ 0⤋
Going after the difference in what you can sell it for and what is owed. Yes the bank can sue you for that difference. Best of luck
2007-12-09 15:26:51 · answer #3 · answered by Big Deal Maker 7 · 0⤊ 0⤋