Posted on: 13th May, 2010 07:56 pm
I have an investment property (condo) for which the mortgage is currently under water and I am considering a short sale for same. I also own 2 other condos free & clear in my personal name as well. What would be the best way to protect the free & clear condos from the bank for which I have the under water mortgage, ie prevent the bank from attaching a lien on the free and clear condos to satisfy the under water condo's mortgage?
Hi mdw!
Welcome to forums!
The lender can attach a lien to your free and clear condo in order to order to recover the deficient balance resulting from the short sale of your other condo. Rather than going for a short sale, I would suggest you to go for a deed in lieu of foreclosure to get rid of the condo. Though your credit will be badly affected, you won't be liable for the deficient balance. Thus, the lender will not place a lien on your other condos.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The lender can attach a lien to your free and clear condo in order to order to recover the deficient balance resulting from the short sale of your other condo. Rather than going for a short sale, I would suggest you to go for a deed in lieu of foreclosure to get rid of the condo. Though your credit will be badly affected, you won't be liable for the deficient balance. Thus, the lender will not place a lien on your other condos.
Feel free to ask if you've further queries.
Sussane