Posted by E.Eka on October 08, 2003 at 10:43:10:
It’s ALWAYS better to sell a property than to have it foreclosed. His credit would be destroyed. The seller’s credit is probably stained but it’s still better than having a foreclosure on it.
As to your second question, usually the mortgagees (lenders of mortgages) can come after the lawyer after foreclosure if there is a deficiency after the auction. You’re only protected from that if you’re in bankruptcy. The exception is if the lenders agree to accept less than what is owed. Or a short sale. Usually the short sale will work after the property becomes REO. Depending on the market, the lender would consider the cost/benefit of auctioning the property or taking you lower offer.