Posted on: 09th Sep, 2009 09:57 pm
I live in Washington state. I presume it's not an anti-deficiency state? In that case, would it be better to do a short sale or a dil if I have a choice?
I am not sure I would be approved for either as I have an okay paying job and am just now going delinquent on payments (at the quasi-suggestion of my Realtor). I owe $176,000 on the house in first and 2nd mortgages. The Realtor (and the market) suggests that the house might list for $160,000. Likely the selling price would be lower.
If I end up owing the difference to either lender, how do they get blood out of a turnip? Can they garnish my wages to the extent that I have nothing to live on?
I am not sure I would be approved for either as I have an okay paying job and am just now going delinquent on payments (at the quasi-suggestion of my Realtor). I owe $176,000 on the house in first and 2nd mortgages. The Realtor (and the market) suggests that the house might list for $160,000. Likely the selling price would be lower.
If I end up owing the difference to either lender, how do they get blood out of a turnip? Can they garnish my wages to the extent that I have nothing to live on?
the state of washington has anti-deficiency laws which prohibit the assessment of deficiency judgments against borrowers who face non-judicial foreclosure. in such a situation, i feel, it is better to go for a short sale. the deficient amount resulting from the sale would be forgiven. moreover, your credit score would be lowered only by 75-100 points. if you go for a deed in lieu or foreclosure, your credit score will go down by 250 points.
however, as you've mentioned that there is a second mortgage on the property, you would be liable to pay it off. that won't be forgiven under the anti-deficiency laws.
however, as you've mentioned that there is a second mortgage on the property, you would be liable to pay it off. that won't be forgiven under the anti-deficiency laws.