My Hard Money loan is going to foreclosure - Posted by DSmith111
Posted by DSmith111 on May 23, 2007 at 12:45:50:
I won?t go into the messy details, but after hanging on for almost a year, a property I bought to resell (it hasn?t) is going to be foreclosed next month and I?m trying to figure out what to expect.
Long story short, I bought a house based on comparables that turned out to be fraudulent and far from accurate (I made a lot of mistakes). The hard money lender gave me an appraisal and loan based on a value of 155K. I currently owe 107K to the lender.
Anyway, like I said, it?s going to foreclosure next month. I have a few questions.
- If they sell at auction for less than I owe, can they sue me for the remaining balance and legal fees?
- If they can sue me, will I have a viable defense, given that they provided an appraisal of 155K and I only owe 107K?
I know there are tax implications, but I believe my loss will offset any tax I have to pay for relief of debt. Are there any other issues I need to consider?
Thanks for your help.