Posted on: 02nd Jul, 2009 12:12 pm
Hi All,
I'm in a situation right now and would need some advice.
My wife and I bought a town house last year in San Jose, CA for 600K. We have two loans from the same bank - First loan was for 417K and Second Loan (HELOC) was for 123K. Till date all payments are current.
We are going through a Divorce right now and she has moved out of the property. I still occupy the property as my primary residence and I'm in process of considering to short selling the property. The reasons why I'm considering to short sell are that the Property itself is under water by about 120K and since she has moved out - I have to pay for the mortgage, HOA etc which is more than 60 % of my salary and I can't afford that. Also - We have some savings but not enough to pay the difference to the bank.
Can the Bank come after our Savings? Will I be liable to pay taxes on the difference if the Bank agrees for a Short Sell? Also can I just stop paying the mortgage payments and still occupy the place as my primary residence?
Thanks,
Thanks
I'm in a situation right now and would need some advice.
My wife and I bought a town house last year in San Jose, CA for 600K. We have two loans from the same bank - First loan was for 417K and Second Loan (HELOC) was for 123K. Till date all payments are current.
We are going through a Divorce right now and she has moved out of the property. I still occupy the property as my primary residence and I'm in process of considering to short selling the property. The reasons why I'm considering to short sell are that the Property itself is under water by about 120K and since she has moved out - I have to pay for the mortgage, HOA etc which is more than 60 % of my salary and I can't afford that. Also - We have some savings but not enough to pay the difference to the bank.
Can the Bank come after our Savings? Will I be liable to pay taxes on the difference if the Bank agrees for a Short Sell? Also can I just stop paying the mortgage payments and still occupy the place as my primary residence?
Thanks,
Thanks
anath1974
welcome to mortgagefit
" Also can I just stop paying the mortgage payments and still occupy the place as my primary residence?"
You can not be able to live there for a longer period.
"Can the Bank come after our Savings?"
Bank can not come after your savings.
See these quotes from some other website as a reference.
"Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing as there are carrying costs that are associated with a foreclosure."
I am not very sure about the taxes.
keep in touch...........
welcome to mortgagefit
" Also can I just stop paying the mortgage payments and still occupy the place as my primary residence?"
You can not be able to live there for a longer period.
"Can the Bank come after our Savings?"
Bank can not come after your savings.
See these quotes from some other website as a reference.
"Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing as there are carrying costs that are associated with a foreclosure."
I am not very sure about the taxes.
keep in touch...........