Posted on: 12th Jul, 2010 04:01 am
I have a primary single family home in CA that is about $100,000 under water. I have a Mobile home on 1 acre in NC that I own outright, plus I have 10 acres in NC that I have a mtg. on. I want to get out of my primary home in CA. and move permanently to NC. I really don't want to walk away from it because I have a pretty good FICA (around 750), but I am stuck in CA until I get rid of the house there. If I do either short sell or walk away (foreclosure) what would be my consequence? Can the banks take away my Mobile Home and land in NC? Will I own taxes?
Hi shaymac,
In California, the lender will not be able to come after you for the deficient balance that results from the property sale. Thus, it would be a better option to go for a short sale rather than a foreclosure. A short sale will reduce your credit score by 80-100 points whereas a foreclosure will reduce your score by 250 points. As you want to save your credit, it's better to go for a short sale. As far as I can understand, the lender won't come after your mobile home and land in NC.
Thanks,
Jerry
In California, the lender will not be able to come after you for the deficient balance that results from the property sale. Thus, it would be a better option to go for a short sale rather than a foreclosure. A short sale will reduce your credit score by 80-100 points whereas a foreclosure will reduce your score by 250 points. As you want to save your credit, it's better to go for a short sale. As far as I can understand, the lender won't come after your mobile home and land in NC.
Thanks,
Jerry
Thank you Jerry, I forgot to include one very important thing in my post. I also have a second mtg. on the CA home. If I short sell with the first mtg. which would be about 50,000 less than I owe them. Would I still owe the 2nd mtg. company the $47,000 that is still owed to them, since the sale would not be enough to pay them off. Can the 2nd mtg. come after me for the debt? The 2nd mortgage is held by a credit union, also the 2nd mtg. is in both my name and my fiancé's name, whereas the first mtg. is only in my name, if that makes a difference.
hi shaymac,
the second mortgage lender, i.e., the credit union will be able to come after you in order to recover his dues from you. this mortgage balance will not be forgiven by the second lender. if you're unable to pay off the dues, then the lender will charge off the balance dues to a collection agency who'll in turn harass you for the payment.
feel free to ask if you've further queries.
sussane
the second mortgage lender, i.e., the credit union will be able to come after you in order to recover his dues from you. this mortgage balance will not be forgiven by the second lender. if you're unable to pay off the dues, then the lender will charge off the balance dues to a collection agency who'll in turn harass you for the payment.
feel free to ask if you've further queries.
sussane