To Short Sale or Not To Short Sale

Posted by Cat on April 29, 2008 at 17:23:32:

Hello, I live in California. I can no longer afford my 2 mortgages (80%20%) on my house, which is currently upside down by $120,000. I've had it on the Market for 2 years. I am 3 months behind and the Trustee Sale is scheduled for July.

Just recently I got a good offer on the house and have obtained all necessary paperwork from my Realtor to submit to my Primary Lender for the Short Sale.

My Question is, what happens with my 2nd Mortgage Co? I have read all the rules about Foreclosure and since I am pretty certain that both loans are considered "“purchase money” loans (obtained both at same time when purchasing the house) I believe the 2nd can't come after me for the unpaid balance if the house is taken in foreclosure.

But, what about a short sale? If the Primary Lender agrees to the Short Sale, can the 2nd say no? Do they have new rights if they don't get any $ from the Short Sale (which they won't)?? Is it better to just foreclose and take the hit on my credit?

Thank you very much.

Follow Ups:


Name    : 
E-Mail  : 
Subject : 

Comments:

 

      The "Reply" function is disabled for older messages.
Please visit the Foreclosure Discussion Board for current discussions.