Posted on: 23rd Oct, 2010 07:03 am
I have a condo in CA that is in foreclosure. The bank has rejected two market value offers for a short sale and is holding for a certain amount that they probably won't get. I have two mortgages from two different banks on the property. When they sell it, it will probably not pay off the first loan in full.
Can anyone explain to me what happens next? I am especially concerned about what happens to the second loan. I cannot afford to pay a lawyer for legal advice at this time.
Thank you for your help.
Mel
Can anyone explain to me what happens next? I am especially concerned about what happens to the second loan. I cannot afford to pay a lawyer for legal advice at this time.
Thank you for your help.
Mel
i should add to the above problem that we have already received a notice from the second mortgage that it has been "charged off" and we need to pay the amount in full.
would deed in lieu of foreclosure work in our situation, or will we still end up with the balance after the property is sold? (the current market value is about $150,000 less than what we paid for it.)
would deed in lieu of foreclosure work in our situation, or will we still end up with the balance after the property is sold? (the current market value is about $150,000 less than what we paid for it.)
Hi Melanie!
Welcome to forums!
Whether you go for a short sale or a deed in lieu of foreclosure, you'll be liable for paying off the second mortgage in full. If you go for a deed in lieu of foreclosure, then you won't have to pay off the deficient balance resulting from the sale of the property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Whether you go for a short sale or a deed in lieu of foreclosure, you'll be liable for paying off the second mortgage in full. If you go for a deed in lieu of foreclosure, then you won't have to pay off the deficient balance resulting from the sale of the property.
Feel free to ask if you've further queries.
Sussane