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CONSEQUENCES OF SHORTSALE?

Posted on: 20th Jan, 2007 05:50 pm
IF I SELL MY HOME ON A SHORT SALE OR DEED IN LEUI WILL I BE RESPONSIBLE FOR UNPAID BALANCES?
The lender accepts the short sale instead of foreclosure and as such you won't be responsible to pay any balance left after sale of the property.
Posted on: 20th Jan, 2007 05:57 pm
Check if deficiency judgment is allowed in your state or not.

At the time you have negotiation about the short sale, if in your state deficiency judgment is applicable then ask the lender to waive his rights over any shortfall from the sale by way of a deficiency judgment.
Posted on: 20th Jan, 2007 06:55 pm
hi rjs,

welcome to forums.

it will depend upon your state laws actually. there are anti-deficiency laws to avoid you from paying the deficiency provided you have taken out loan to purchase your home.

the home has to be your primary residence. however, if you have taken out an equity loan or refinance loan, then anti-deficiency laws are not applicable.

thanks,
james.
Posted on: 21st Jan, 2007 09:49 pm
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