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What is potential liability in nonprimary residence default?

Posted on: 25th Sep, 2008 03:19 pm
I have been trying to sell rental property for 2 years, but have been unsuccessful. I can't continue with the negative cash flow, but I'm unsure what the consequences will be.
Hi jbernal!

Welcome to the Forums!

The consequences will be same as in case of primary residence. The lender may go for a foreclosure on the property. You can try and persuade the lender to go in for a deed in lieu but chances are that he will not agree to this as you were not able to sell it for 2 years.

You can also trying renting the property once again.

Feel free to ask if you have further queries.

Sussane
Posted on: 25th Sep, 2008 10:26 pm
Hi jbernal,

The consequences will be almost similar to what happens if a person fails to pay for a residential property. The lender may be willing to foreclose as because the short sale wasn't a success.

Take Care
Posted on: 26th Sep, 2008 01:37 am
Hi jbernal!

I think the lender will ask for a foreclosure because you are unable to sell the property.
Posted on: 26th Sep, 2008 01:44 am
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