im 120,000 upside down,and they raised my payment cant make the new payment to high they wont do a short sale

Asked by Steve, Nevada Fri Apr 10, 2009

am i responsiable for the balence when its forclosed? it will only sell for 89.000 any suggestions????

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Colin Storm, Agent, Falls Church, VA
Fri Apr 10, 2009
Have you had an experienced agent communicate with the bank on your behalf? Banks are not in the business of carrying property, and going to foreclosure would likely cost them nearly half of the 89k your home would sell for. Did they raise your payment because you missed a payment, or was it a scheduled adjustment?

Banks will work with you if you have the following:
- Proof of hardship (job loss, mortgage adjustment, illness, etc..)
- in (or threatening) default
- lack of other assets (investments, savings etc, with the exception of retirement accounts)
- Other items and agent can help you through

To answer your question, yes, you would eventually be held responsible for the balance. It is called a deficiency judgment, and banks will almost always pursue this on a foreclosure. However, in a Short Sale the deficiency can often be negotiated as forgiven.

My only concern in your case would be if the bank is considering foreclosure the better option because the loss and the value is, in itself, so upside down. I would highly recommend speaking with an experienced distress property agent in your area.
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Chance Gates, , Reno, NV
Fri Apr 10, 2009
If you want to stay in the house, I would contact your senator and see if he can help you refinance. If some cases they can not only lower your interest payment but they can also get the principal.
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blaison samu…, Agent, Santa Clara, CA
Fri Apr 10, 2009
Colin is right!! You need to speak with a experienced short sale agent to represent on your behalf to sell the property and negotiate with the lender and to release from any deficiency, if possible. Let me know if you need any referral for short sale agent in your area.

Blaison Samuel
Certified Short Sale Specialist
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