We bought another primary residence, and would like to short sale our previous primary residence?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
We bought another primary residence, and would like to short sale our previous primary residence?
So we bought a new primary residence closer to our jobs, and were planning on keeping our previous primary residence as a rental until the market turns around. But now my wife is in fear of losing her job, and we can’t afford to keep our previous primary residence, so we want to short sale on our previous house. (which is further away from our jobs). IF I try to do this and the bank is not willing and the house goes into foreclosure, am i risking any type of Lein’s being placed on my Primary Residence?? I’m okay with the credit hit, i just want to make sure my Primary residence is protected!
Asked on July 5, 2009 under Real Estate Law, California
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
Possibly the bank will accept a deed in lieu of foreclosure? I've provided you with a link that explains this further and compares a deed in lieu to a short sale - including the tax consequences.
Hope this helps.
B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
The problem is, if you have to let the first property go into foreclosure, if it sells for less than the balance plus the foreclosure costs, the lender can get a deficiency judgment, which would become a lien on your primary residence.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.