Posted on: 13th Aug, 2009 02:43 pm
So we just got approved for the short sale of our home. In it there is mention of a promissory and they reserve the right to seek money for that loan. I was told and have read that a lot of time they don't even go after the money. But when do we know that it is all over? How long could this hang over our heads? and is it hurting our credit as still an outstanding unpaid bill? I am starting to think we should have just let them foreclose on us.
I read that there was a moretoreum of a year put on it that they only have 1 year to collect, but what in the case of the people who signed the promissory notes.
Anyone have any good info on this?
I read that there was a moretoreum of a year put on it that they only have 1 year to collect, but what in the case of the people who signed the promissory notes.
Anyone have any good info on this?
Please check your other post
Hi Chickab,
If you have signed the promissory note, you are liable to pay the mortgage in full. Now, if you short sell the property, there will be deficiency which you'll be liable to pay off. The lender will have the right to come after you for this difference.
If you let them foreclose on the property, your credit will be ruined. Your scores will drop by around 250 points. A short sale is less damaging and drops your credit by about 75-100 points. Even if the lender forecloses on the house and they fail to recover the loan amount by selling it, they may still come after you for the deficiency. You may try to do a deed in lieu of foreclosure. Chances are there that the deficiency will be forgiven by the lender.
If you have signed the promissory note, you are liable to pay the mortgage in full. Now, if you short sell the property, there will be deficiency which you'll be liable to pay off. The lender will have the right to come after you for this difference.
If you let them foreclose on the property, your credit will be ruined. Your scores will drop by around 250 points. A short sale is less damaging and drops your credit by about 75-100 points. Even if the lender forecloses on the house and they fail to recover the loan amount by selling it, they may still come after you for the deficiency. You may try to do a deed in lieu of foreclosure. Chances are there that the deficiency will be forgiven by the lender.