Agent2Agent in Chicago>Question Details

Saul Garcia, Real Estate Pro in Chicago, IL

What happens to sellers, when they own other property and do a Short Sale? Is there lien placed on the second property for the balance?

Asked by Saul Garcia, Chicago, IL Mon Jan 30, 2012

Help the community by answering this question:

Answers

8
BEST ANSWER
Properties are seperate, no liens placed on 2nd property.
1 vote Thank Flag Link Mon Jan 30, 2012
The 2nd property would not be involved,however I would check with an real estate attorney Debbie Bergthold-Smith Classic Real Estate
1 vote Thank Flag Link Mon Jan 30, 2012
However a deficiency judgement can go after personal assets such as 401K's (as an example) and second homes might fall into that category. Am interested in an attorney's opinion...
1 vote Thank Flag Link Mon Jan 30, 2012
I'm curious about this myself. I'd like to add a friendly follow-up: what about a foreclosure?
1 vote Thank Flag Link Mon Jan 30, 2012
Read any loan docs, the collateral used to secure a loan is the subject property.
1 vote Thank Flag Link Mon Jan 30, 2012
I have not personally seen or know about a situation where a lien was placed on someone’s second property by the lender(s) that are shorted. At worse they might want an unsecured note for a portion of the balance owed such as10%.
1 vote Thank Flag Link Mon Jan 30, 2012
If both properties are financed by the SAME bank....you need, really really need to read the fine print.
Web Reference: http://www.MyDunedin.com
0 votes Thank Flag Link Tue Jan 31, 2012
Nothing happens to the other property.The lender can only collect from the property that the lien was placed on. If they were unable to collect the full amount in the case of a short sale the lender can handle this two ways either take the balance as a complete loss or may ask for a promissory note to be signed by the seller for a certain amount . Then the rest will would then be take as a lost. By the lender.
0 votes Thank Flag Link Tue Jan 31, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer