Nikki,

If your home is not foreclosed then try to do a short sale rather than foreclosure. Now, to answer your question, it all depends on your state law whether that state is judicial or non-judicial state. If it's non-judicial and your loan is non-recourse (means you used your loan for purchase of your house and not anything else) then you don't owe the remaining balance after it sold in short sale. Consult with your accountant for the tax law for clear information and hire an experienced agent in short sale. Let me know if I can help you with anything further. You can reach me at blaison@blaisonsamuel.com

Good luck!

Blaison
Certified Short Sale Expert

Hi Nikki,

This one is a tough question. I have seen where the mortgagee has placed a judgement against the mortgagor for the difference and then there are other situations where this hasn't occured. It really does depend upon the mortgagee...it might be difficult to do, but to get an answer to this question, a call will need to be placed and discussions made with them directly to determine what their intentions/policies are for this situation.

I'm sorry to hear about the situation - it usually is a result of circumstances beyond one's control. I wish you the best of luck.

Sincerely,

Tracy L. Williams