What assets can bank pursue on a short sale in Kansas?

Asked by Dave Dykstra, Overland Park, KS Fri Jan 24, 2014

My wife and I live in town house that we paid $196k 11 yrs ago. Assessed value is $135k and we owe $170k. We are both now on SS disability payments plus a monthly pension payment (PBG) and a temporary LTD payment that will end in about 1 yr. I have a small 401k and a small life insurance cash value. I do not qualify for HARP. The primary is $135k and the secondary is $35k.

If bank agrees to short sale, are they giving up the right to pursue me for the balance? If not, what assets could they attach or garnish? We do not intend to purchase another property.

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4
Anna M Brocco, Agent, Williston Park, NY
Fri Jan 24, 2014
For accurate information consult with an attorney who specializes in real estate beforehand, most professionals do offer a free consultation; don't simply rely on online information which may, or may not be precise...
3 votes
Luanne Reeves, Agent, Town of Johnson, VT
Thu Feb 6, 2014
Whether or not the bank will pursue a deficiency depends upon the type of loan you have, as well as the terms of the short sale. If you have an FHA loan, and you are accepted into the FHA Pre-foreclosure Program, the lender is required to waive the deficiency in the event an acceptable offer is submitted, accepted, and closed. I have done MANY short sales, and none have my clients have ever been asked to make a contribution where their only assets were 401K or life insurance. I am an attorney as well as a realtor, but that being said, beyond what I have stated above, each case is different, and there are just too many variables to fully and accurately answer your question without more information. I act only as a realtor on my short sale transactions, and do not dispense legal advise. That second lien could be a concern if they are unwilling to accept the settlement offered by the first lien holder. They frequently do, but not always.
Luanne Reeves
lreeveskwr@gmail.com
913.484.8664
1 vote
Nice response Luanne!! And I didn't know you were an attorney.
Flag Wed Mar 19, 2014
Ken Schmidt, Agent, Lawrence, KS
Tue Feb 4, 2014
With no offense meant to Ms. Shopper and the unnamed respondent below, Ms. Brocco is fully correct. You should not trust the responses in an online forum to provide the legal information you need to proceed properly. Providing a small legal fee to a lawyer for correct legal advise will save you a lot of money in the future. Let an attorney provide sound legal guidance then seek a licensed REALTOR® to handle the negotiation process as needed.

Good luck!

-Ken Schmidt
0 votes
Angela Shopp…, Agent, Lenexa, KS
Fri Jan 24, 2014
Call me and I can come by your house and explain to you and your wife all about your different options

You have lots of choices and there are a lot of variables so I can help you with choosing the best way to proceed for you.

My phone number is 913-707-6884
0 votes
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