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forclosure or short sale?

Posted on: 09th Jul, 2009 11:58 am
i have a house that i was renting out and it has a first and second mortgage on it. i have a balloon payment due on that house in sept and have given the renters an option to buy it. they are having difficulty getting financed and i'm afraid they will move out. i cannot afford the payments if they move and have no option but to sell it or let it go into forclosure if it doesn't sell, with the market right now, i will never sell it for what is owed on it, so if it sells, it will be a short sale. my question is: if it goes into forclosure, and sells at a sheriff acution, and the 2nd mortgage does not get paid, what action can they take against me? can they garnish my wages for the balance on the house?
donnawitt2

Welcoem to the forum

The second loan will go in to collectiosn and they will come after you for that money. You cna probably end up negotiating for lower amoutn with the collection agency.

Good luck and feel free to ask
Posted on: 09th Jul, 2009 12:26 pm
Thanks for your reply, I live in Ohio and I know the foreclosure laws are different in each state. What is the procedure for Ohio and how does it work with a 2nd mortgage?
Posted on: 09th Jul, 2009 12:30 pm
Not sure specifically about OH.

Some of the specialist on this forum can probably help you with that question
Posted on: 09th Jul, 2009 01:40 pm
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