Posted on: 08th Jan, 2010 11:56 am
If you let your underwater home in Georgia go back to the lender, can the lender, in Georgia, go after your other assets?
Hi consultant,
In Georgia, the lenders are allowed to sue the borrowers for deficiency amount when a home is foreclosed. Thus, if you let the lender foreclose the property or go for a short sale, the lender will sue you for the balance amount. You can rather go for a deed in lieu of foreclosure, wherein the lenders sell off the property but forgive the deficient amount. However, it will lower your credit score by 250 points.
Thanks
In Georgia, the lenders are allowed to sue the borrowers for deficiency amount when a home is foreclosed. Thus, if you let the lender foreclose the property or go for a short sale, the lender will sue you for the balance amount. You can rather go for a deed in lieu of foreclosure, wherein the lenders sell off the property but forgive the deficient amount. However, it will lower your credit score by 250 points.
Thanks