Posted on: 21st May, 2010 08:10 am
When one does a short sale that leads to a deed in lieu, can the lender come after any assets you might have? I have never been late on payments, but we have an interest only loan and the house is worth about $100,000 less than the loan amount. This is a rental property and our finances are fine right now, but will get destroyed if we keep throwing money down this deep dark hole. so, my question is, since our finances are fine right now, will the bank even accept our short sale? Will our primary residence, cars, savings accounts be safe from the lender?
Hi Guest,
If the lender has gone for a deed in lieu of foreclosure in order to sell off your property, he won't be able to come after you for the deficient balance. The deficient balance is forgiven in this case.
You can apply for a short sale now. However, if you go for a short sale, then the lender will be able to come after you for the deficient balance. If you cannot pay it off, then the lender will be able to place a lien on your property, cars or savings account.
Thanks
If the lender has gone for a deed in lieu of foreclosure in order to sell off your property, he won't be able to come after you for the deficient balance. The deficient balance is forgiven in this case.
You can apply for a short sale now. However, if you go for a short sale, then the lender will be able to come after you for the deficient balance. If you cannot pay it off, then the lender will be able to place a lien on your property, cars or savings account.
Thanks
foreclosing on one home have another , what does this mean as far as credit score
Hi Guest,
A foreclosure will have a negative impact on your credit scores. It will lower your scores by around 250 points and you will be liable for paying off the deficient balance in full. If you don't do so, then your lender can place a lien on your other home.
Thanks
A foreclosure will have a negative impact on your credit scores. It will lower your scores by around 250 points and you will be liable for paying off the deficient balance in full. If you don't do so, then your lender can place a lien on your other home.
Thanks