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Answers (2)
- Janice Gatlin, "tahoeforsale"
- Contributions:13
Yes, I agree with Sean. Each situation is different and you need professional advice.
However, in my experience, a short sale will not "stop" a foreclosure. We list a lot of REOs and many of them were in the middle of a short sale when they were foreclosed on. Once a propety IS sold through a short sale however, it cannot then also be foreclosed on.
The issue of whether or not the bank can come back to you after the sale for the unpaid loan balance is fairly simple: if you get a written promise before you close the property that the bank will not seek recourse, then you should be ok (speak to an attorney for legal advice on this).
It's complicated, but the way to think of it is: the REO department and the Short sale departments of banks are somewhat separate and while you are working on the short sale, the foreclosure process isn't 'stopped'. They may stay the actual foreclosure date, but not stop the entire process.
If you do decide to continue with a short sale, you need to seek an experienced short sale agent who knows how to negotiate with the bank and understands the critical issues. Also contact a qualified real estate attorney and CPA regarding the legal and tax issues.
Best of luck.
However, in my experience, a short sale will not "stop" a foreclosure. We list a lot of REOs and many of them were in the middle of a short sale when they were foreclosed on. Once a propety IS sold through a short sale however, it cannot then also be foreclosed on.
The issue of whether or not the bank can come back to you after the sale for the unpaid loan balance is fairly simple: if you get a written promise before you close the property that the bank will not seek recourse, then you should be ok (speak to an attorney for legal advice on this).
It's complicated, but the way to think of it is: the REO department and the Short sale departments of banks are somewhat separate and while you are working on the short sale, the foreclosure process isn't 'stopped'. They may stay the actual foreclosure date, but not stop the entire process.
If you do decide to continue with a short sale, you need to seek an experienced short sale agent who knows how to negotiate with the bank and understands the critical issues. Also contact a qualified real estate attorney and CPA regarding the legal and tax issues.
Best of luck.
- Sean Glaze, "Sean Glaze"
- Contributions:399
You need to contact a property attorney to protect your self and your property.
It is going to depend on the terms of the modification loan you refi'd in 2010.
It is going to depend on the terms of the modification loan you refi'd in 2010.
Can any assets I own be seized by bank/lender after or during Short Sale process??
I have initiated a Short Sale process on my property in San Bernardino County (California) due to the following reasons: although I negotiated a loan modification with both my 1st and 2nd mortgage lenders back in 2010, I am unable to make the payments on the property. My son and his wife have been living in the house but due to his profession (construction) and the drop in employment he has not made enough money to pay the house note. I purchased a mobile home in a senior mobile home park and that's where I reside even though all my bank info, tax info and bills still go to the property in Ontario. I decided to do a Short Sale and my realtor told me that would stop a foreclosure and that I would not have any negative tax consequences as a result of the short sale. In my hardship letter I did indicate my mobile home. My question is can the lenders come after my mobile home. I do not own it outright - I took out an equity loan in an attempt to pay some bills and pay the mortgage on the Ontario property. I am afraid that the lenders could take my mobile home which is the only thing I have. I am a widow, retired and only have a very small part-time job. Can I end up losing everything I own??? Thank you for any information you can give me.
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