Hi David, Whether banks can come after you and will pursue deficiency judgments depends on many factors, including what state the borrower lives in and whether there's a second mortgage or other liens. But if borrowers ignore the possibility of deficiencies, it could haunt them.
State law in California protects you from recourse on your original loan on
â€œ Non recourse loan â€œ
But, even there, if the original loan was refinanced, some or all of it may be subject to claims.
Second mortgage or lines of credit, you are personally liable from the debt that is a â€œ recourse - loan â€œ
The cash-out refinance you may have done is also not protected from recourse.
You can negotiate to settle or sign a promissory note . Remember in a Short sale event or a Deed In Lieu of foreclosure the Consequences on 2nd Other liens are the same.
Donâ€™t forget you may have a â€œ 1099c issued by the lender after a short sale or
You have to contact an attorney or a professional CPA
When you sell your house via Short Sale you need to list your home with a Real Estate Agent with experienced doing Short Sale .
You need to price your house right
You need honest professionals to guide you in the best directionâ€¦
I Help homeowners thought every step of the short sale process.
Call me for a no obligation Consultation to see if Short sale is your best option.
Cecilia Rodriguez â€œ Pre foreclosure Short sale Specialist â€œ
( 951 ) 858-5797 Lic # 01505884
Prudential California Realty