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Short Sale vs Forclosure

Posted on: 05th Aug, 2009 07:30 pm
I have a home in CA and I am upside down by over 300,000 I have been working with the bank to attempt a Modification. It's been almost a year. I have another property willed to me by my brother who passed two years ago. If I short sale or foreclose on my home can the bank come after my second home. Both upside down. Better to short sale or forclose considering deed in leiu of
Baschshirley

Welcoem to the forum

Best option is to start with a short sale and see if the bank agrees for it.

If not then the next option woudl be to do deed in lieu and that does nto workt then consider the forclsoure

The bank can come after you for the deficient amount

Good luck and feel free to ask
Posted on: 05th Aug, 2009 08:11 pm
Hi Baschshirley,

In case of a short sale or foreclosure, you would be liable to pay the deficient amount resulting from the sale of the property. If you cannot pay the deficient amount resulting from the sale of the property, then the lender may place lien on your other property.

In my opinion, it would be better if you could go for a deed in lieu. In this option, though you will have to surrender the property to the lender, you won't be liable for the balance amount resulting from the sale of the property.
Posted on: 05th Aug, 2009 08:40 pm
Baschshirley

Welcoem to the forum

for you deed in lieu is the best option. but it is the last thing for a lender. So plan very carefully.
Posted on: 06th Aug, 2009 11:06 am
Untill your debts are recovered, the bank can have the right to go for other property or any other assets you own. One thing I could not get is doesn't the value of both the property combined couldn't make the debts paid?
Or the loan he owned on the property were carried over to you along with property?
Posted on: 08th Aug, 2009 06:32 am
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