Foreclosure in 92108>Question Details

Ken, Home Seller in 92108

my property is mortgaged for £ 650000 and I cannot afford the mortgage payments.If the mortgage company

Asked by Ken, 92108 Wed Jun 24, 2009

foreclose on the property and sells it for less thn $650000 am I liable for the difference?

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5
Hi Ken,

As you can see across the board, all of us Real Estate Professionals highly suggest talking to an Attorney, tax and accounting professional (that you feel comfortable with) to analyze your specific and unique situation.

Their are many options available to you prior to going into foreclosure (sale of the property at the courthouse steps) that could help relieve some of the issues a full foreclosure would bring. I would love to help you discover these options and see how we can come to a solution. I specialize in foreclosure and shortsales and understand these stressful circumstances. Let me know. I am a resource!
0 votes Thank Flag Link Fri Mar 5, 2010
The rules are different for home owners taht live on the property than they are for non-owner occupied properties. I would start by talking with your lender, and see what options they can offer you. Right now there are many: loan modification, short sale, Deed in Lieu, and foreclosure.

Good Luck,

Joan Wilson (Realtor, SRES, Ecobroker)


California Cool 4 Sale
Prudential California Realty
Direct Phone: 760-757-3468
Fax: 760-946-7894
JoanWilson@prusd.com
License # 01341483

It is my Goal to Increase the Success and Profitability of Those I Serve
0 votes Thank Flag Link Wed Jun 24, 2009
Dear Ken, I would consult your tax accountant or attorney for a specific answer to your circumstances.

In general in California with a purchase money loan on real estate, if the lender forecloses on a principle home with a trust deed sale there is no recourse for the difference. A purchase money loan is where the loan was used for the purchase. Owner occupied means that it is the home that you are living in.

2nd and Jr. Lenders may have recourse in California and it has become more common in short sale approvals for those lenders to reserve the right to go after the Seller.

Once again I cannot stress how important it is to seek professional advice for your specific situation.
0 votes Thank Flag Link Wed Jun 24, 2009
Carol gave good advice - Talk with a Real Estate Attorney


You may also want to familiarize yourself with the

United States Internal Revenue Service page titled:

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

http://www.irs.gov/individuals/article/0,,id=179414,00.html

Best wishes to you,
Fred
.
0 votes Thank Flag Link Wed Jun 24, 2009
I suggest you speak to an attorney who handles real estate. You can also see if the bank will do a short sale you wil need a negotiator for that process. Do you still want to keep your home? Where are you located feel free to e-mail me carolperry2009@live.com
0 votes Thank Flag Link Wed Jun 24, 2009
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